Indorama Ventures Public Company Limited (IVL) agreed to acquire Brazil-based Oxiteno S.A. Indústria e Comércio, a subsidiary of Ultrapar Participações S.A.
The acquisition gives IVL a unique portfolio in high-value surfactants and significantly extends its existing Integrated Oxides and Derivatives (IOD) business.
Oxiteno is a leading integrated surfactants producer, catering to highly attractive end-use markets in LATAM.
Through the acquisition, IVL will assume a unique market position in technologies catering to niche, IP-rich and value-added applications in home & personal care, agrochemicals, coatings and oil & gas markets. The surfactants market has seen consistent growth over the last decade, driven by trends in population growth, urbanization and increasing hygiene awareness amid the Covid-19 pandemic.
Oxiteno has eleven industrial units in Brazil, Mexico, the US, and Uruguay; two global R&D centres, three R&D facilities, and eight commercial offices in Argentina, Belgium, China, and Colombia.
IVL will purchase Oxiteno for US$1.3 billion (subject to adjustments at closing), with a deferred payment of $150 million in 2024.
The transaction is subject to customary conditions to closing, including approval of relevant regulatory authorities.
The transaction is expected to close in Q1 2022 and will be earnings accretive immediately.
Mr Aloke Lohia, IVL Group CEO, said, “This acquisition is a natural fit for us. We have a solid track record of continuously driving value for shareholders through successfully integrating 50 acquisitions over the past 20 years. With Oxiteno, we are creating a global leader in surfactants. By bringing our companies together, we are strengthening our customer value proposition, our market reach, and our experienced team. Like us, Oxiteno grew as a family enterprise with an entrepreneurial mindset. The combination of our teams is unmatched in our industry, and we look forward welcoming them to our family.”
Frederico Curado, CEO of Ultra Group, said, “It is important to ensure that Oxiteno will benefit from integrating the new majority shareholder into the business, which is strategically positioned to lead the company through its growth path.”