Thailand’s Indorama Ventures Public Company Limited (IVL) has acquired 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.
The surfactants market has been consistently growing over the last decade, driven by trends in population growth, urbanization and increasing hygiene awareness, in particular in the wake of the Covid-19 pandemic.
Stronger positions in the Americas
Oxiteno is a leading integrated surfactants producer, catering to highly attractive end-use markets in LATAM. According to IVL, “the acquisition brings an excellent management team, world-class expertise in green chemistry innovation, strong customer relationships in Brazil, Uruguay and Mexico, and substantial growth potential in attractive end markets, including the U.S. through a new facility in Pasadena, Texas.”
Furthermore, Oxiteno’s focus on lowering greenhouse gas emissions will also help IVL to enhance its ESG credentials.
IVL will purchase Oxiteno for US$ 1.3 billion with a deferred payment of $150 million in 2024. The transaction is subject to customary conditions to closing, including approval of relevant regulatory authorities.
“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,” commented Aloke Lohia, IVL Group CEO.