Alpek, S.A.B. de C.V. announced that it has received all necessary approvals from the regulatory authorities and has finalized its acquisition of OCTAL Holding SAOC, said the company.
Pursuant to the purchase agreement, Alpek acquired 100% of the shares of OCTAL for USD620 million on a debt-free basis. Financing was secured through a mix of free cash flow generated from existing businesses and dedicated bank loans.
Alpek will assume control of OCTAL's operations starting on June 1, 2022. The Company expects an accretive EBITDA effect of approximately USD120 million from these assets throughout the remainder of 2022, largely based on the better-than-expected Polyester market conditions prevalent in recent months. This would increase the Company's Comparable EBITDA Guidance to USD1,370 million and Reported EBITDA Guidance to USD1,485 million.
"We are pleased to have concluded this acquisition ahead of the expected timeline," stated Jose de Jesus Valdez, Alpek's CEO. "We are excited to welcome OCTAL's management team and employees into our family, leveraging their long-standing relationships with customers, their diverse backgrounds, and technical proficiency to drive the Company's long-term growth."
As per MRC, Alpek reported a decline in Q4 consolidated net income because of the shutdowns at two plants and higher taxes. The company shut down its caprolactam operations in Salamanca, Mexico and its stable fibres operations in Cooper River in South Carolina state, US. Alpek shut down the plants because of an extended period of low margins that were caused by high raw-material costs.
It was previously reported that Alpek and its joint venture partners may restart construction of their polyethylene terephthalate (PET) project in Texas in 2022. Production could start in two years, which means a launch in early 2024.
Alpek is the largest petrochemical company in Mexico and the second largest in Latin America. Its business is divided into two main segments: "polyesters" (terephthalic acid, polyethylene terephthalate and polyester fibers) and "plastics and chemicals" (polypropylene, expanded polystyrenes, caprolactam, polyurethanes and other specialty and industrial chemicals). Alpek is the world's leading manufacturer of purified terephthalic acid and PET; it owns the largest expanded polystyrene plant on the continent and one of the largest polypropylene plants in North America. Alpek currently has 19 factories in Mexico, USA and Argentina. Alpek is part of the Mexican conglomerate Grupo Alfa. Alpek also owns DAK Americas.
mrchub.com