Company News

April 24, 2019

Q1 M&A Activity

Chemical Deal Results

Seller Buyer Business Date
public investment fund of Saudi Arabia Saudi Aramco SABIC (petrochemicals) – $45,000s/$69,000v – sale of a 70% interest 1st Quarter 2019
Newell One Rock Capital Process Solutions (plastic, nylon monofilament and zinc products) – $640s 1st Quarter 2019
ProPolymer Coatings Tnemec tank linings, exterior coatings and containment products 1st Quarter 2019
Tronox (Cristal) Ineos North American TIO2 – $700v 1st Quarter 2019
Benefect ICP Group (Audax) botanical-based disinfectant and cleaning supplies 1st Quarter 2019
Dunes Point Capital JM Huber Miller Chemical & Fertilizer (crop protection, fertilizer and other horticultural products) 1st Quarter 2019
BASF Nufarm Trunemco (seed treatment) 1st Quarter 2019
Chemroy Azelis distribution of specialty chemicals and food ingredients 1st Quarter 2019
New England Resins & Pigments Brenntag distribution 1st Quarter 2019
BCC Products Polytek Development (Arsenal Capital) tooling, mold making and casting polymers 1st Quarter 2019
Seller Buyer Business Date
Evonik Advent International methacrylates – €1,800s/€3,000v 1st Quarter 2019
Axiom Kordsa composite materials for aerospace and industrial applications – $181v 1st Quarter 2019
Tech Air (CI Capital) Airgas distribution of welding gas and welding supplies – $190s 1st Quarter 2019
Actagro (Norwest Equity) Nutrien plant nutrients – $340v 1st Quarter 2019
Allete Kurita US Water Services (water treatment chemicals, equipment and engineering capabilities, service and process technology offerings) – $270v 1st Quarter 2019
The Additive Advantage IFF technology for printing scents, tastes and active ingredients on foods, cosmetics and nutrition products 1st Quarter 2019
Aceto New Mountain Capital distribution – $178s/$338v 1st Quarter 2019
GH Chemicals EverZinc (OpenGate Capital) zinc chemicals 1st Quarter 2019
American Dehydrated Foods and International Dehydrated Foods Symrise meat and egg-based ingredients for pet food – $220s/$900v 1st Quarter 2019
Americhem Sales investment group solvents, oils and lubricants distribution 1st Quarter 2019
Seller Buyer Business Date
Pachem Brenntag distribution – $15s 1st Quarter 2019
DowDuPont Gyrus Capital and management DuPont Sustainable Solutions (operations risk management and operations excellence) 1st Quarter 2019
Polymer Concentrates Chroma Color (Arsenal Capital) color concentrates 1st Quarter 2019
Univar (Nexeo) One Rock Capital plastics distribution – $640v 1st Quarter 2019
Presco Polymers River Associates safety marking products 1st Quarter 2019
LCY Chemical KKR polypropylene, polypropylene fibers, performance composites, thermoplastic elastomers, methanol, solvents, rubber – $1,560v 1st Quarter 2019
Chemres Charter Oak Equity commodity and engineering resins 1st Quarter 2019
Linde Celanese synthesis gas plant in TX 1st Quarter 2019
Flotek Industries ADM Florida Chemical (citrus-based flavors and fragrances) – $175v 1st Quarter 2019
Arsenal Capital Leggett & Platt Elite Comfort Solutions (bedding foam products) – $1,250v 1st Quarter 2019
Seller Buyer Business Date
Whitford Worldwide PPG fluoropolymer and ceramic coatings – $200s 1st Quarter 2019
Corteva Agriscience American Vanguard Quizalofop line of herbicides 1st Quarter 2019
Henkel Molecular Products Group Sodasorb (carbon dioxide absorbents) 1st Quarter 2019
Cabot Sinomine Rare Metals Resources Specialty Fluids (cesium formate brines and cesium chemicals) – $45s/$130v + royalties 1st Quarter 2019
Polymer Ventures BASF (Chemetall) automotive paint detackification (including Galaxy Chemical) 1st Quarter 2019
Black Diamond Structures SABIC energy storage applications with carbon nanotube technology 1st Quarter 2019
Reeder Distributors Brenntag lubricants distribution – $60s 1st Quarter 2019
Custom Polymers PET LLC Indorama PET recycling 1st Quarter 2019
Hemmelrath PPG coatings 1st Quarter 2019
Sun European Partners Sinochem ELIX Polymers (ABS resins and derivatives) – €195v 1st Quarter 2019
Seller Buyer Business Date
Perpetual Recycling Solutions DAK Americas PET recycling 1st Quarter 2019
Structured Polymers Evonik 3D printed materials 1st Quarter 2019
Votorantim Aterian Investment Partners US Zinc (zinc oxide, zinc dust and zinc metal products) 1st Quarter 2019
Fiber-Line PolyOne engineered fibers and composite materials – $120v 1st Quarter 2019

http://www.chemicaldeals.com/Results.aspx?searchtext=&quarter=1st+Quarter+2019

 

April 16, 2019

Bayport PO Plant Turns 50

LyondellBasell’s Bayport Complex Propylene Oxide Plant Turns 50

Plant helped pave the way for Houston’s petrochemical dominance

PASADENA, Texas, April 16, 2019 /PRNewswire/ — LyondellBasell’s Bayport Complex in Pasadena, Texas, today commemorated 50 years of operation at its propylene oxide plant and provided an update on their role in the company’s most significant capital project to date, the construction of the largest propylene oxide (PO), tertiary butyl alcohol (TBA) plant in the world.

LyondellBasell celebrated its 50th anniversary today. CEO Bob Patel (4th from left) and Site Manager Stephen Goff (3rd from left) joined long-term employees who have been at the Bayport Complex for 40+ years.

“Today we are proud to celebrate a half century of operations, and our talented and dedicated colleagues who laid the foundation for our success,” said Stephen Goff, LyondellBasell Bayport Complex site manager. “We continue to be propelled by the support of our neighbors, our values, and the generations of employees who came before us.”

In addition to the 50th anniversary ceremony, the complex marked the milestone by furthering the company’s support of advancing education with a donation of books to La Porte ISD’s Bayshore Elementary School through The Astros Foundation Literacy Bus Program and a donation of books and backpacks to Dickinson ISD’s Kenneth E. Little Elementary School through the Barbara Bush Houston Literacy Foundation’s My Home Library Program. Bayport also announced plans for employees to partner with Trees for Houston to plant 50 trees in the local community in honor of 50 years of operations.

The next chapter

The LyondellBasell PO plant was a first of its kind when it was constructed in 1969 near the Houston Ship Channel, using new tertiary butyl hydro peroxide process technology to produce PO. It was designed to meet increased demand for PO in the 1970s. Bayport was selected as the site for the plant due to its close proximity to feedstock and existing pipelines, which are the same reasons the Bayport Complex will be making history yet again. LyondellBasell is constructing the largest propylene oxide (PO) and tertiary butyl alcohol (TBA) plant in the world and Bayport is playing a key role in this project.

“The Bayport Complex has a rich history and is pivotal to our company’s strategic growth along the Gulf Coast,” said LyondellBasell CEO Bob Patel. “In Texas, bigger is often better. For us, this facility marks a new chapter for LyondellBasell and demonstrates our commitment to continued growth and delivering on our commitments.”

PO is used in the manufacture of bedding, furniture, carpeting, coatings, building materials and adhesives, while TBA will be converted to two ether-based oxyfuels, methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE). Both MTBE and ETBE are high-octane gasoline components that help gasoline burn cleaner and reduce emissions from automobiles.

The PO/TBA plant will have a split facility design to optimize product balances and realize synergies between two LyondellBasell sites. The 140-acre PO/TBA plant is being built at the LyondellBasell Channelview Complex located in Channelview, Texas, while an associated 34-acre ethers unit, which will convert TBA to oxyfuels, is being constructed at the Bayport Complex in Pasadena. The PO/TBA plant is scheduled for startup in 2021 and is estimated to cost $2.4 billion, the company’s most significant capital investment to date.

Bayport Complex and PO Plant History

The Bayport Complex PO plant traces its origin to Oxirane Chemical Company, a joint venture between subsidiaries of Atlantic Richfield Company and Halcon International Inc. After ownership changes over the years, the plant became part of LyondellBasell’s asset portfolio when Lyondell and Basell merged in 2007.

The complex, which manufactures materials used in paints and coatings, food packaging and home furnishings, generates approximately $530 million in annual economic activity for the local community and is home to 1,150 workers. Two other plants, in addition to the PO plant, are situated at the 880-acre LyondellBasell Bayport Complex. Those plants include a polymers plant, which began operations in 1974 and an ethylene oxide plant, which began operations in 1981.

“For half a century, this plant has played a significant role in the development of Houston’s petrochemical industry and its employees have helped shape our local communities,” said U.S. Congressman Brian Babin. “I am very honored to help celebrate this significant milestone with LyondellBasell, and I’m grateful for their important contributions to and investments in this area of East Texas.”

In 2018, American Fuel and Petrochemical Manufacturers (AFPM) recognized the complex with its Distinguished Safety Award (DSA) for exemplary safety performance. The DSA represents the highest achievement in safety and reflects excellence in occupational safety, process safety and occupational health in the domestic refining and petrochemical manufacturing industries.

For more information about the complex, visit https://www.lyb.com/en/bayport-choate-plant/.

About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world’s largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine’s list of the “World’s Most Admired Companies.” More information about LyondellBasell can be found at www.LyondellBasell.com.

Bayport Then (L): LyondellBasell’s Bayport Complex is celebrating 50 years of operation of its propylene oxide (PO) plant. The plant started up in 1969 and was on the forefront of the chemical industry as the first plant to use tertiary butyl hydro peroxide process technology.  |  Bayport Now (R): LyondellBasell’s Bayport Complex celebrates the 50th anniversary of its propylene oxide (PO) plant. The materials produced at our plant go far and wide and are used to make a variety of products.

LyondellBasell (PRNewsfoto/LyondellBasell)

SOURCE LyondellBasell

For further information: Kim Windon, (713) 309-4738, kimberly.windon@lyondellbasell.com

April 16, 2019

Recticel Offer From Kingspan

Statement regarding Kingspan Group plc

Occasional information, Brussels, 16/04/2019 — 16:59 CET

Recticel NV announces that it has received today an unsolicited non-binding offer from Kingspan Group Plc to acquire Recticel’s Insulation division and Flexible Foams division for an enterprise value of EUR 700 million on a debt-free, cash-free basis and subject to further price adjustment mechanisms. Recticel has taken note of the press release issued by Kingspan.

Kingspan has indicated that it has entered into a back-to-back agreement with a third party for the disposal of all of the Flexible Foams business. Kingspan has not provided Recticel with any details, including but not limited to the identity, nature, rationale or consideration to be paid for the flexible foam business, in respect of this third party.

Kingspan’s non-binding offer is subject to due diligence satisfactory to Kingspan, agreement on transaction documentation (including a material adverse change clause) and obtaining anti-trust clearance.

Recticel’s Board of Directors will analyse the proposal in line with its fiduciary duty and update the market.

It is uncertain whether the proposal will result in an agreement to divest one or more divisions and if so, whether anti-trust clearance can be obtained.

In 2018, the Insulation division achieved combined sales of EUR 271.2 million with an Adjusted EBITDA of EUR 44.7 million, and the Flexible Foams division achieved combined sales of EUR 621.5 million with an Adjusted EBITDA of EUR 41.5 million.

https://www.recticel.com/statement-regarding-kingspan-group-plc.html

April 16, 2019

Recticel Offer From Kingspan

Statement regarding Kingspan Group plc

Occasional information, Brussels, 16/04/2019 — 16:59 CET

Recticel NV announces that it has received today an unsolicited non-binding offer from Kingspan Group Plc to acquire Recticel’s Insulation division and Flexible Foams division for an enterprise value of EUR 700 million on a debt-free, cash-free basis and subject to further price adjustment mechanisms. Recticel has taken note of the press release issued by Kingspan.

Kingspan has indicated that it has entered into a back-to-back agreement with a third party for the disposal of all of the Flexible Foams business. Kingspan has not provided Recticel with any details, including but not limited to the identity, nature, rationale or consideration to be paid for the flexible foam business, in respect of this third party.

Kingspan’s non-binding offer is subject to due diligence satisfactory to Kingspan, agreement on transaction documentation (including a material adverse change clause) and obtaining anti-trust clearance.

Recticel’s Board of Directors will analyse the proposal in line with its fiduciary duty and update the market.

It is uncertain whether the proposal will result in an agreement to divest one or more divisions and if so, whether anti-trust clearance can be obtained.

In 2018, the Insulation division achieved combined sales of EUR 271.2 million with an Adjusted EBITDA of EUR 44.7 million, and the Flexible Foams division achieved combined sales of EUR 621.5 million with an Adjusted EBITDA of EUR 41.5 million.

https://www.recticel.com/statement-regarding-kingspan-group-plc.html

April 15, 2019

BASF Continues MDI Expansion in Geismar

BASF to Launch Second Phase of MDI Production Facility in Louisiana

BATON ROUGE, La. — Today, Gov. John Bel Edwards and BASF Senior Vice President Stefan Doerr announced the company will proceed with the second phase of its production expansion for methylene diphenyl diisocyanate, or MDI, at its Louisiana chemical complex in Geismar. BASF expects to double its production of MDI, from 300,000 metric tons to around 600,000 metric tons, through the multiphase expansion project announced in January 2018.

Details were shared in a press release.

MDI is used by industrial customers to produce polyurethanes, which contribute to improved insulation for appliances, lighter materials for cars and energy efficiency in buildings.

BASF will make an $87 million capital investment to continue the expansion of the MDI plant that has been a central aspect of its Geismar manufacturing facility for more than 30 years. The company committed $150 million to the first phase of the MDI expansion. That project is expected to be finalized in the first half of 2020. The second phase of the project will retain 1,238 existing BASF jobs at Geismar, the company’s largest manufacturing site in North America. Construction is expected to start by the end of 2019 with completion scheduled for 2021. The company estimates the project will support 170 construction jobs.

“BASF has called Louisiana home for more than 60 years, and this latest expansion at its Geismar plant will help to keep the company competitive in its global marketplace,” Gov. Edwards said. “From low operational costs to effective infrastructure and logistics, Louisiana provides industries across a broad spectrum of manufacturing specialties with the assets they need to succeed. We welcome this latest expansion at BASF’s Geismar facility and look forward to the continued economic impact of company operations for Ascension Parish and the Capital Region.”

BASF is a major player in the polyurethanes industry, operating a global production network of MDI facilities in China, South Korea, Belgium and the U.S.

“With the development of the American market, BASF needs this investment to support the growth of our existing customers,” said Doerr, head of BASF’s Regional Business Unit Monomers in North America. “The Geismar site is ideally suited for this investment thanks to the existing infrastructure, competitive raw materials and favorable business support from state and local governments. This investment also demonstrates our strong commitment to our employees, our community and our presence in Louisiana.”

Since 2009, BASF has invested more than $800 million in major capital projects in Ascension Parish. For this expansion project, the company is expected to utilize the state’s Industrial Tax Exemption Program.

“BASF continues to prove its commitment to our community and local workforce by investing and creating a partnership of long-term economic growth,” Ascension Parish President Kenny Matassa said.

“Ascension Parish remains an ideal place for chemical manufacturing, and we are thrilled that BASF continues to choose the Geismar facility as a place to grow and thrive,” said President and CEO Kate MacArthur of the Ascension Economic Development Corp.

“Today’s expansion announcement is welcome news for the Capital Region, and speaks to BASF’s confidence in the future of our economy,” said President and CEO Adam Knapp of the Baton Rouge Area Chamber. “Strong partnerships from the local to state level are important in creating business friendly environments, and we commend our allies at Ascension Economic Development Corporation for assisting BASF through the process.”

http://www.bizneworleans.com/April-2019/BASF-To-Launch-Second-Phase-Of-MDI-Production-Facility-In-Louisiana/