Alpek acquires Octal for $620mn

Muscat Daily: Mexico-based petrochemicals company Alpek on Wednesday announced that it has received all necessary approvals from the regulatory authorities and has finalised its acquisition of Salalah-based Octal.

Pursuant to the purchase agreement, Alpek acquired 100 per cent of the shares of Octal for US$620mn on a debt-free basis, according to a press statement issued by Alpek.

Financing was secured through a mix of free cash flow generated from existing businesses and dedicated bank loans, the company said.

Alpek will assume control of Octal’s operations starting on June 1, 2022. The company expects an accretive Ebitda effect of approximately US$120mn from these assets throughout the remainder of 2022, largely based on the better-than-expected polyester market conditions prevalent in recent months.

“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,” he said.

Octal – the maker of PET sheets and a leader in the clear rigid packaging industry – in February had announced that the shareholders of Octal Holding entered into an agreement to sell a 100 per cent stake to Alpek.

With its proprietary direct-to-sheet manufacturing technology and early adoption of advanced PET resin manufacturing processes, Octal has become a global leader in PET packaging.

Oman-based Octal is the world’s largest PET resin and sheet producer on a single site. Operating from its main hub in Salalah, the company has successfully harnessed its strategic location with access to East-West shipping lanes and favourable trading regulations, coupled with unique-to-the-world manufacturing capabilities to meet the breadth and depth of customer demand.

https://www.muscatdaily.com/2022/06/01/alpek-acquires-octal-for-620mn/

Muscat Daily Contribution Time: 05-Jun-2022 15:28 (GMT)
Muscat Daily Last Update Time: 05-Jun-2022 15:28 (GMT)