Indorama Ventures Public Company Limited (SET: IVL) announced that on 1 April 2022, it completed the acquisition of a 100 percent equity stake in Oxiteno S.A. – Indstria e Comércio, a corporation duly organized and existing under the laws of the Federative Republic of Brazil, and its affiliates (Oxiteno), and management has taken responsibility for all operations in Brazil, Uruguay, Mexico, and USA.
Oxiteno becomes part of IVL’s Integrated Oxides and Derivatives (IOD) business segment. The acquisition includes 11 manufacturing plants in Latin America and USA, 5 R&D centers, an experienced management team, a strong environmental governance record, and expertise in green chemistry innovation. Through Oxiteno, IOD assumes a leading position in technologies catering to innovation-led, high-value-add (HVA) surfactant solutions in attractive home & personal care, crop solutions, and coating & resources markets. This diversity increases IOD’s earnings stability and resilience. The surfactants market has seen consistent growth over the last decade, driven by trends in population growth, urbanization and increasing hygiene awareness amid the global pandemic.
The Oxiteno transaction has an enterprise value of 6.1x EV/EBITDA based on 2021 results and is earnings accretive immediately. It is fully financed by free cash flows, including a deferred payment of US$150 million in April 2024, working capital short-term assets, and interest-bearing debt. IVL expects to drive savings of US$100 million through portfolio adjustments, asset optimization and operational excellence.
