Company News

February 25, 2020

TPC Update

TPC Group says to rebuild Texas plants destroyed in November 2019 blast

Highlights

Rebuild will take ‘a number of years’: company

Site can be a terminal in meantime; layoffs coming

Houston — TPC Group said on Tuesday the company was “evaluating and planning” to rebuild parts of its southeast Texas petrochemical complex that were destroyed in a pair of November 2019 explosions.

The butadiene processing facility “is expected to take a number of years to rebuild,” the company said.

In the meantime, TPC said the company can operate the site in Port Neches, Texas, as a terminal to serve current and potential future customers and suppliers.

TPC also will lay off an unspecified number of workers because fewer will be needed to operate a terminal, the company said.

“The company communicated to its employees today it is has made the very difficult yet necessary decision to reduce the workforce at its Port Neches operations,” TPC Group said. “The company does not expect that we will need employees beyond those necessary to operate as a terminal for more than three to five years. The downsizing will impact salaried employees as well as union/hourly employees.”

SITE SHUT SINCE LATE NOVEMBER

The site, which had made more than 16% of US butadiene supply, has been shut since a pair of explosions damaged the butadiene processing facility on November 27, sending one tower high into the air. The explosions damaged surrounding tanks and prompted evacuations in surrounding communities.

US spot export butadiene was last assessed by S&P Global Platts on February 21 at 42 cents/lb CIF USG, up more than 64% since the explosion. US contract butadiene was last assessed the same day at 42.50 cents/lb CIF USG, up nearly 12% since the incident.

TPC Group said neighboring industrial plants that had shut down or reduced rates in the aftermath of the explosions were up and running. The company also was making “good progress” restoring terminal capabilities that require dock, tank farm and pipeline operations in the first half of 2020.

Those neighboring plants include what was then Huntsman’s propylene oxide/methyl tertiary butyl ether (MTBE) unit, which shut after the explosions because the company stored MTBE at the TPC Group site.

Indorama Ventures acquired that and other chemical intermediate and surfactant units from Huntsman in early January for $2 billion, and brought forward a planned turnaround with the TPC site idled. The turnaround was expected to wrap up by the end of March, according to an Indorama presentation.

TPC Group said Tuesday that 96% of the high purity butadiene and more than 50% of material containing 1,3 butadiene has been transported from the blast site. Once those transfers are complete, TPC Group said it would move crude C4, raffinate, polyblend and other process materials to other locations and finish securing the site.

Butadiene is used to make synthetic rubber and resin, while raffinate is used to make MTBE, which is used as a gasoline additive outside of the US.

https://www.spglobal.com/platts/en/market-insights/latest-news/petrochemicals/022520-tpc-group-says-to-rebuild-texas-plants-destroyed-in-november-2019-blast?utm_source=twitter&utm_medium=realtime&utm_content=petrochemicals&utm_term=news&utm_campaign=webed&utm_source=hootsuite&utm_medium=twitter&utm_term=plattspetchems&utm_content=402a0ceb-1616-4164-8b6f-965d0839e298&utm_campaign=hootsuitepost

February 25, 2020

FXI and Innocor Merger Completed

FXI and Innocor Complete Merger, Creating a Leading Provider of Innovative Comfort Technology

  • By FXI
  • Updated

RADNOR, Pa., Feb. 25, 2020 /PRNewswire/ —

  • Expansive manufacturing and geographic footprint and superior molecule-to-doorstep approach enables FXI to best meet the evolving needs of customers across industries and regions
  • Integrated brand will reflect FXI’s position as the preeminent vertically integrated mattress and topper manufacturer in the fast-growing bedding industry
  • FXI pioneers technologies that enhance style, comfort, performance, and wellness across consumer and technical applications

FXI today announced that it has successfully completed its previously announced merger with Innocor, creating a leading provider of innovative comfort technology solutions. The breadth of the combined company’s capabilities enables it to offer a complete array of end-to-end solutions across the broadest range of end markets – including bedding, furniture, healthcare, filtration, transportation, and acoustics. The combined company will operate under the FXI name.

The combined company possesses a wide range of relationships and capabilities, built through the heritage of two complementary industry pioneers, to deliver solutions that enhance everyday life. Consumers can find FXI’s products in a multitude of applications and experience the countless benefits of those products – from their homes, healthcare, workplaces, cars, and beyond.

“This is an incredibly exciting day for FXI, its talented employees and valued, longstanding partners. As a newly combined company utilizing the expertise of an integrated management team and significantly enhanced manufacturing and logistical capacity, FXI is positioned to deliver an expanded range of high-quality solutions to our customers faster and more efficiently,” said Harold J. Earley, President and Chief Executive Officer of FXI. “We will continue to emphasize operational excellence, putting our customers first and investing in R&D to develop new products, chemistries, processes, and applications. The new FXI will leverage our combined expertise to deliver comfort, wellness, and style to consumers across categories.”

In the rapidly growing bedding market, where purchasing habits of consumers are driving increased demand for innovative technologies, FXI is uniquely positioned to satisfy the comfort needs of consumers everywhere by leveraging distinct technical expertise and consumer-driven insights. FXI is a trusted supplier to leading mattress-in-a-box companies and other established consumer brands and will continue to grow Innocor’s Novaform and Sleep Innovations mattress brands with a focus on innovation and value.

In connection with obtaining Federal Trade Commission approval of the merger, FXI and Innocor have agreed to sell three production facilities to Future Foam, Inc., including FXI’s Kent, Washington location and Innocor facilities located in Elkhart, Indiana and Tupelo, Mississippi. Now headquartered in Radnor, Pennsylvania, FXI boasts 34 manufacturing and distribution facilities throughout North America with approximately 4,150 dedicated employees after accounting for the divested facilities described above.

Affiliates of One Rock Capital Partners, LLC, FXI’s controlling shareholder, will be the majority shareholder of the combined company with Bain Capital Private Equity, Innocor’s majority owner, continuing to own a stake in the combined company. Additional information on the newly integrated company is available at www.fxi.com.

ABOUT FXI
FXI is a leading comfort technology supplier to North American home furnishings providers, including wholesale bedding manufacturers, DTC mattress providers and furniture retailers, OEMs and fabricators. Across a wide range of relationships and capabilities, FXI embraces the power and potential of bedding technologies to improve the sleep experience. FXI’s products also include solutions for the Home, Healthcare, Electronics, Industrial, Personal Care and Transportation end markets. For more information please visit: www.fxi.com.

https://www.dailyamerican.com/news/state/fxi-and-innocor-complete-merger-creating-a-leading-provider-of/article_a095dd94-0126-5c10-b391-e10b6724daab.html

February 25, 2020

FXI and Innocor Merger Completed

FXI and Innocor Complete Merger, Creating a Leading Provider of Innovative Comfort Technology

  • By FXI
  • Updated

RADNOR, Pa., Feb. 25, 2020 /PRNewswire/ —

  • Expansive manufacturing and geographic footprint and superior molecule-to-doorstep approach enables FXI to best meet the evolving needs of customers across industries and regions
  • Integrated brand will reflect FXI’s position as the preeminent vertically integrated mattress and topper manufacturer in the fast-growing bedding industry
  • FXI pioneers technologies that enhance style, comfort, performance, and wellness across consumer and technical applications

FXI today announced that it has successfully completed its previously announced merger with Innocor, creating a leading provider of innovative comfort technology solutions. The breadth of the combined company’s capabilities enables it to offer a complete array of end-to-end solutions across the broadest range of end markets – including bedding, furniture, healthcare, filtration, transportation, and acoustics. The combined company will operate under the FXI name.

The combined company possesses a wide range of relationships and capabilities, built through the heritage of two complementary industry pioneers, to deliver solutions that enhance everyday life. Consumers can find FXI’s products in a multitude of applications and experience the countless benefits of those products – from their homes, healthcare, workplaces, cars, and beyond.

“This is an incredibly exciting day for FXI, its talented employees and valued, longstanding partners. As a newly combined company utilizing the expertise of an integrated management team and significantly enhanced manufacturing and logistical capacity, FXI is positioned to deliver an expanded range of high-quality solutions to our customers faster and more efficiently,” said Harold J. Earley, President and Chief Executive Officer of FXI. “We will continue to emphasize operational excellence, putting our customers first and investing in R&D to develop new products, chemistries, processes, and applications. The new FXI will leverage our combined expertise to deliver comfort, wellness, and style to consumers across categories.”

In the rapidly growing bedding market, where purchasing habits of consumers are driving increased demand for innovative technologies, FXI is uniquely positioned to satisfy the comfort needs of consumers everywhere by leveraging distinct technical expertise and consumer-driven insights. FXI is a trusted supplier to leading mattress-in-a-box companies and other established consumer brands and will continue to grow Innocor’s Novaform and Sleep Innovations mattress brands with a focus on innovation and value.

In connection with obtaining Federal Trade Commission approval of the merger, FXI and Innocor have agreed to sell three production facilities to Future Foam, Inc., including FXI’s Kent, Washington location and Innocor facilities located in Elkhart, Indiana and Tupelo, Mississippi. Now headquartered in Radnor, Pennsylvania, FXI boasts 34 manufacturing and distribution facilities throughout North America with approximately 4,150 dedicated employees after accounting for the divested facilities described above.

Affiliates of One Rock Capital Partners, LLC, FXI’s controlling shareholder, will be the majority shareholder of the combined company with Bain Capital Private Equity, Innocor’s majority owner, continuing to own a stake in the combined company. Additional information on the newly integrated company is available at www.fxi.com.

ABOUT FXI
FXI is a leading comfort technology supplier to North American home furnishings providers, including wholesale bedding manufacturers, DTC mattress providers and furniture retailers, OEMs and fabricators. Across a wide range of relationships and capabilities, FXI embraces the power and potential of bedding technologies to improve the sleep experience. FXI’s products also include solutions for the Home, Healthcare, Electronics, Industrial, Personal Care and Transportation end markets. For more information please visit: www.fxi.com.

https://www.dailyamerican.com/news/state/fxi-and-innocor-complete-merger-creating-a-leading-provider-of/article_a095dd94-0126-5c10-b391-e10b6724daab.html

February 25, 2020

FXI and Innocor to Divest Three Plants

FTC Requires Polyurethane Foam Producers FXI Holdings, Inc. and Innocor, Inc. To Divest Assets in Three Regional Markets

Agency alleges merger would reduce competition among producers of foam used in home furnishings

For Release

Polyurethane foam producers FXI Holdings, Inc. and Innocor, Inc. have agreed to divest polyurethane foam pouring plants in three regional markets to Future Foam, Inc., to settle Federal Trade Commission charges that FXI’s proposed $850 million acquisition of Innocor would violate federal antitrust law.

The FTC alleges that the combination of FXI and Innocor would substantially lessen competition for low-density conventional polyurethane foam used in home furnishings in three regional markets: the Pacific Northwest (Oregon and Washington); the Midwest states of Indiana, Michigan, and Ohio; and Mississippi.

The complaint states that regional markets are appropriate because low-density foam is bulky and expensive to ship, relative to the value of the product. FXI and Innocor are the only suppliers in the Pacific Northwest, two of three major suppliers in the Midwest states, and two of four major suppliers in Mississippi, according to the complaint.

The complaint alleges that without a remedy, the proposed acquisition would eliminate direct and substantial competition between FXI and Innocor and would increase the likelihood of coordinated interaction among the remaining competitors in each regional market.

To remedy the proposed transaction’s anticompetitive effects, the proposed order requires the companies to divest FXI’s foam-pouring plant in Kent, Washington and Innocor’s foam-pouring plants in Elkhart, Indiana and Tupelo, Mississippi to Future Foam no later than 10 days after the close of the acquisition. Further information about the consent agreement—including details on transitional assistance and the appointment of a monitor—are set forth in the analysis to aid public comment for this matter.

The Commission vote to issue the complaint and accept the proposed consent order for public comment was 5-0. The FTC will publish the consent agreement package in the Federal Register shortly. Instructions for filing comments appear in the published notice. Comments must be received 30 days after publication in the Federal Register. Once processed, comments will be posted on Regulations.gov.

https://www.ftc.gov/news-events/press-releases/2020/02/ftc-requires-polyurethane-foam-producers-fxi-holdings-inc-innocor

February 25, 2020

FXI and Innocor to Divest Three Plants

FTC Requires Polyurethane Foam Producers FXI Holdings, Inc. and Innocor, Inc. To Divest Assets in Three Regional Markets

Agency alleges merger would reduce competition among producers of foam used in home furnishings

For Release

Polyurethane foam producers FXI Holdings, Inc. and Innocor, Inc. have agreed to divest polyurethane foam pouring plants in three regional markets to Future Foam, Inc., to settle Federal Trade Commission charges that FXI’s proposed $850 million acquisition of Innocor would violate federal antitrust law.

The FTC alleges that the combination of FXI and Innocor would substantially lessen competition for low-density conventional polyurethane foam used in home furnishings in three regional markets: the Pacific Northwest (Oregon and Washington); the Midwest states of Indiana, Michigan, and Ohio; and Mississippi.

The complaint states that regional markets are appropriate because low-density foam is bulky and expensive to ship, relative to the value of the product. FXI and Innocor are the only suppliers in the Pacific Northwest, two of three major suppliers in the Midwest states, and two of four major suppliers in Mississippi, according to the complaint.

The complaint alleges that without a remedy, the proposed acquisition would eliminate direct and substantial competition between FXI and Innocor and would increase the likelihood of coordinated interaction among the remaining competitors in each regional market.

To remedy the proposed transaction’s anticompetitive effects, the proposed order requires the companies to divest FXI’s foam-pouring plant in Kent, Washington and Innocor’s foam-pouring plants in Elkhart, Indiana and Tupelo, Mississippi to Future Foam no later than 10 days after the close of the acquisition. Further information about the consent agreement—including details on transitional assistance and the appointment of a monitor—are set forth in the analysis to aid public comment for this matter.

The Commission vote to issue the complaint and accept the proposed consent order for public comment was 5-0. The FTC will publish the consent agreement package in the Federal Register shortly. Instructions for filing comments appear in the published notice. Comments must be received 30 days after publication in the Federal Register. Once processed, comments will be posted on Regulations.gov.

https://www.ftc.gov/news-events/press-releases/2020/02/ftc-requires-polyurethane-foam-producers-fxi-holdings-inc-innocor