3 February 2010
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Ineos Fluor to be bought by Mexichem Fluor S.A.
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THE Ineos group is to sell its fluorochemicals business to Mexichem Fluor SA.
The agreement will bring together the world's largest fluorspar supplier and HF producer with a worldwide fluorochemicals company. Mexichem is a Latin American producer of PVC pipes and resin, chloralkali, hydrofluoric acid and fluorspar.
The deal comprises the international business and assets related to Ineos' fluorochemical operations located in North America, Europe, and Asia. Ineos Fluor supplies fluorine-based products and services for the refrigeration and air-conditioning sector and employs 350 people in Europe, North America and Asia.
David Price, CEO Ineos Fluor said: 'Whilst performing well, the fluorochemicals business no longer fits within the Ineos group portfolio as it focuses its attention on its large-scale petrochemicals businesses.'
He added: 'The agreement presents a unique opportunity to bring together the world's largest supplier of fluorspar, with our own world leading fluorochemical production assets, customer base and research capabilities.'
The sale is expected to be completed at the end of March, subject to necessary regulatory filings and approvals, including bank consent and approvals under applicable antitrust laws and regulations.
On completion of the transaction, the business will become a global producer of speciality fluorochemicals with annual sales revenue of over US $500 million.
Ricardo Gutiérrez Muñoz, CEO, Mexichem said, “Acquiring Ineos’ Fluorochemicals business reflects our ongoing strategy to add value to our main raw materials through vertical integration in more added value products, expanding our product range and extending the global reach of our fluorine products business.”