Incorporating high-value PET sheet business into its portfolio ahead of schedule
Monterrey, N.L., Mexico. May 31, 2022 - Alpek, S.A.B. de C.V. ("Alpek" or "the Company") announced today that it has received all necessary approvals from the regulatory authorities and has finalized its acquisition of OCTAL Holding SAOC ("OCTAL").
Pursuant to the purchase agreement, Alpek acquired 100% of the shares of OCTAL for U.S. $620 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 U.S. $120 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 U.S. $1,370 million and Reported EBITDA Guidance to U.S. $1,485 million.
"We are pleased to have concluded this acquisition ahead of the expected timeline," stated José de Jesús 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."
Alpek Concludes Acquisition of OCTAL
Incorporating high-value PET sheet business into its portfolio ahead of schedule
Monterrey, N.L., Mexico. May 31, 2022 - Alpek, S.A.B. de C.V. ("Alpek" or "the Company") announced today that it has received all necessary approvals from the regulatory authorities and has finalized its acquisition of OCTAL Holding SAOC ("OCTAL").
Pursuant to the purchase agreement, Alpek acquired 100% of the shares of OCTAL for U.S. $620 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 U.S. $120 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 U.S. $1,370 million and Reported EBITDA Guidance to U.S. $1,485 million.
"We are pleased to have concluded this acquisition ahead of the expected timeline," stated José de Jesús 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."
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Alpek SAB de CV published this content on 31 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2022 20:11:11 UTC.
Alpek SAB de CV is a Mexico-based company engaged in the chemicals sector. The Company's activities are divided into two business segments: Polyester and Plastics & Chemicals. The Polyester division focuses on the manufacture and distribution of purified terephthalic acid (PTA), polyethylene terephthalate (PET) and polyester fiber. The Plastics & Chemicals division is responsible for the production of polypropylene (PP), expandable polystyrene (EPS), caprolactam (CPL), ammonium sulfate, as well as specialty and industrial chemicals, such as surfactants, ethoxilates, glycoethers and desemulsionates. The Company's products are used in a range of industries, including consumer goods, food and beverages, automotive, construction, agriculture, oil and gas, as well as pharmaceuticals. It operates a number of production plants in the Americas. The Company is controlled by Alfa SAB de CV.