Alpek, S.A.B. de C.V. has reported that one of its subsidiaries has signed an agreement with NOVA Chemicals Corporation to acquire its expandable styrenics business by purchasing a 100% stake in BVPV Styrenics LLC. This is owned and operated by a facility in Monaca Pennsylvania, USA with an annual capacity of 123,000 tons of expendable polystyrene, 36,000 tons of ARCEL and a R&D pilot plant with an annual capacity of 45,000 tons of EPS.
On its second quarter 2020 Earnings Webcast, Alpek named three pillars part of its long-term growth strategy. Strategic & Focused Growth is comprised of value chain integration as this acquisition fuels Alpek’s EPS & ARCEL capacity. This solidifies Alpek’s position as the industry leader in America.
Strengthening its Core Business by improving Global costs, implementing value added products through ARCEL. Footprint Optimization by introducing two new EPS sites in the USA to serve new and existing customers with increased efficiency and lower logistic costs and products to better suit their evolving needs.
“This acquisition is both attractive from a financial perspective as well as fully aligned with Alpek’s longterm growth strategy,” said José de Jesús Valdez, Alpek CEO. “Moving forward, our team is focused on executing a seamless integration to welcome our new team members, while quickly capitalizing on all the identified synergies and business opportunities.”
Terms of the agreement have not been disclosed as the acquisition is expected to close in the fourth quarter of 2020.