Indorama Ventures Public Company Limited completed the acquisition of Oxiteno S.A. Industria e Comercio from Ultrapar Participações S.A..
August 29, 2021
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Indorama Ventures Public Company Limited (SET:IVL) entered into a share purchase agreement to acquire Oxiteno S.A. Industria e Comercio from Ultrapar Participações S.A. (BOVESPA:UGPA3) for $1.3 billion on August 15, 2021. As a part of the transaction, $1.15 billion at closing, subject to customary adjustments, such as changes in working capital and net debt position, and $150 million in the second anniversary after closing. Financing is secured through deferred payment, using existing extra cash on our balance sheet, free cash flow generated from existing businesses, short term loans against working capital and the balance as long-term debt. The completion of this transaction is subject to usual conditions precedent in deals of this type, including approval by the Brazilian antitrust authority, relevant regulatory authorities and American Federal Trade Commission. The members of the Board of Directors of Ultrapar approved the sale of all the shares issued by Oxiteno S.A. Indústria e Comércio. The transaction is expected to close in Q1 2022 and will be earnings accretive immediately. Bank of America Merrill Lynch Banco Múltiplo S.A. acted as a financial adviser and Barbosa, Müssnich & Aragão Advogados acted as a legal adviser to Ultrapar Participações. Areno, Filipe B and Schnell, Paul T from Skadden, Arps, Slate, Meagher & Flom LLP acted as a legal advisor to Ultrapar Participações S.A. (BOVESPA:UGPA3). Nicholas San Filippo IV, Sam E. Khan, Stephen Tanico, Brian Silikovitz, Kristin V. Taylor, Sartaz Singh, Megan Monson, Taryn E. Cannataro, Bryan Sterba, Jenna-Marie Tracy, Doreen M. Edelman, and Abbey E. Baker of Lowenstein Sandler LLP acted as legal advisor to Indorama Ventures Public Company Limited. Stephen Weissman of Gibson, Dunn & Crutcher LLP acted as legal advisor to Indorama Ventures Public Company Limited.
Indorama Ventures Public Company Limited (SET:IVL) completed the acquisition of Oxiteno S.A. Industria e Comercio from Ultrapar Participações S.A. (BOVESPA:UGPA3) on August 30, 2021.
Indorama Ventures Public Company Limited is a Thailand-based petrochemicals producer. The Company operates through three segments: Combined PET, Integrated Oxides and Derivatives (IO), and Fibers. Its Combine PET segment manufactures and distributes polyethylene terephthalate (PET) value chain comprising Paraxylene (PX), Purified Terephthalic Acid (PTA), PET, and recycling (Integrated PET), PET preforms and packaging and specialty PET-related chemicals comprising PIA and NDC. Its Integrated Oxides and Derivatives segment manufactures and distributes integrated EG, integrated purified EO, PO/MTBE and integrated surfactants comprising EOA, LAB and others. Its Fiber segment manufactures and distributes polyester, rayon, nylon, polypropylene, composites and worsted wool fibers, for mobility, lifestyle and hygiene markets. The Company's products are used in health, personal hygiene, human safety and packaging solutions.