International Chemical Investors Group (ICIG)
recently announced an agreement with INEOS
to acquire certain chlorovinyls assets being divested by INOVYN / INEOS
. This agreement, which has been reviewed in the context of the merger control process of both this transaction and the INOVYN JV, has now received approval of the European Commission
. The closing of the acquisition of the remedy business by ICIG is anticipated to be August 1, 2015
The newly acquired businesses will form a new “Chlorovinyls” platform within ICIG named VYNOVA Group with total sales in excess of Euro 850 million, complementing ICIG’s Fine Chemicals and Custom Manufacturing platform WeylChem Group (Euro 670 million in sales), the Pharmaceuticals platform CordenPharma Group (Euro 330 million in sales) and ICIG Enterprises businesses (CarboTech, ENKA and Rütgers Organics; Euro 110 million in sales).
With the addition of VYNOVA, ICIG becomes a leading European player both in the suspension polyvinyl chloride (S-PVC) and the potassium hydroxide (KOH) businesses, resulting in ICIG's aggregated sales in excess of Euro 2 billion, with approximately 6,000 employees in Europe and the US.
The assets being acquired consist of:
The chlorine plants, the EDC/ VCM plants and the KOH plant at Tessenderlo, Belgium
The PVC plant at Mazingarbe, France
The PVC plant at Beek, Netherlands
The PVC and VCM plants at Wilhelmshaven, Germany
The EDC plant at Runcorn, UK
In addition, the membrane chlorine plant at Runcorn is to be placed in a 50/ 50 Joint Venture between INOVYN and VYNOVA. The acquisition will also include a portion of the KOH business at Tessenderlo, with VYNOVA supplying INOVYN under a toll manufacturing arrangement for the proportion of the KOH business that INOVYN will retain.
The newly formed VYNOVA International
will be the sales and marketing organization of VYNOVA Group. Key products sold, besides various grades of S-PVC include chlorine (Cl2)
, vinyl chloride monomer (VCM), ethylene dichloride (EDC), sodium and potassium hydroxide (NaOH, KOH), hydrogen (H2), sodium hypochloride (NaCIO) and hydrochloric acid (HCl).
VYNOVA International will also liaise with ICIG’s company PPC to align the marketing and sales strategy for KOH from its newly converted membrane plant in Thann (France), scheduled for start-up during second half of 2015.
With the acquisition and formation of VYNOVA Group, ICIG significantly expands its European chemicals manufacturing footprint and product portfolio
, also resulting in an increased market share and realization of significant synergies, unified branding and cooperation. It is ICIG’s intent, as achieved within its other platforms, to further grow the VYNOVA Group through complementary acquisitions, and by further expanding its manufacturing capacities and product offerings to customers while increasing scale, realizing synergies and improving cost positions and competitiveness.
Read the Full Press Release here