Stepan, a leading specialty and intermediate chemicals manufacturer, has purchased Invista’s aromatic polyester polyol business and associated assets. Included in the transaction are two manufacturing sites, one in Wilmington, US, and the other in Vlissingen, the Netherlands, and intellectual property, customer relationships, inventory, and working capital.
The business acquired has global sales of approximately $100 mn. This acquisition was financed with cash on hand and is expected to be accretive to Stepan’s EBITDA margins. The management will provide more perspective on this acquisition as part of Stepan’s fourth quarter and full year 2020 results conference call on February 18, 2021, according to Stepan.
“We are excited to add Invista’s polyester polyol capabilities to Stepan. This acquisition expands our manufacturing capability in both the US and Europe, enhances our business continuity capabilities for the market and supports the growth of our global rigid polyol business. We expect that Invista’s available spare capacity, plus debottlenecking opportunities in both plants, will allow Stepan to support market growth in a capital efficient way. We believe the long-term prospects for rigid polyol use in insulation remain strong as energy conservation efforts and more stringent building codes should continue to drive market growth. Additionally, we believe the acquired technology will accelerate our product leadership initiatives, drive manufacturing efficiencies and output, and create increased value for the overall market. We look forward to providing the highest level of service to our new customers and are excited to add the new employees and the two new sites to our global polyester polyol manufacturing network,” F. Quinn Stepan, junior Chairman and Chief Executive Officer of Stepan said. Stepan is a leading merchant producer of surfactants, which are the key ingredients in consumer and industrial cleaning and disinfection products and in agricultural and oilfield solutions.
