Ineos acquires Tessenderlo’s PVC Chlor-Alkali Business

Ineos acquires Tessenderlo’s PVC and Chlor-Alkali Business

2:41 PM, 15th June 2011
Ineos acquires Tessenderlo’s PVC and Chlor-Alkali Business
Frank Coenen, CEO of Tessenderlo Group.

 

BRUSSELS, BELGIUM: Tessenderlo Group and Kerling, a privately held UK-based company, have agreed on a sale and purchase agreement. Kerling, through its Ineos ChlorVinyls business, will become the new owner of Tessenderlo Group’s PVC activities, including VCM, Chlor-Alkali as well as part of Organic Chlorine Derivatives. Besides the major plant at Tessenderlo in Belgium, the production plants in France (Mazingarbe) and the Netherlands (Beek and Maastricht) are involved. This transaction is subject to European merger control approval.

 

The purchase price is 110 million euro on a cash-free, debt-free basis. Through the net debt reduction obtained, the group balance sheet will be further reinforced despite Tessenderlo Group taking a one-time non-cash charge of approximately € 158 million related to this transaction.

 

Frank Coenen, CEO of Tessenderlo Group, emphasised that Ineos ChlorVinyls will be an excellent owner of these activities. “In light of our announced strategy - focusing on specialities - we looked for a long time for the right home for these businesses. Our well-invested assets together with our highly competent workforce are both strengths that were recognized by Ineos ChlorVinyls. As a European leader, Ineos ChlorVinyls is well placed to offer these businesses the best possible growth opportunities,” said Coenen.

 

“The Tessenderlo Group business and assets are high quality. I believe they will be a strong addition to our existing organisation and businesses and will underpin our further profitable growth,” said Chris Tane, CEO, Kerling.

 

Following this transaction, Tessenderlo Group will have completed its exit from commodities and taken the major step towards being a speciality group. Until approvals are attained, Tessenderlo Group will continue to operate the businesses as normal.

(C) WOC News

 

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