Apr 27 2005
BASF announced today that it is selling its polystyrene business in the United States and Canada, including its Joliet, Ill., production facility, to INEOS Americas, LLC, the North American subsidiary of INEOS, an international chemical company headquartered in Lyndhurst, United Kingdom.
The sale of the polystyrene business is part of BASF’s successful implementation of its North American restructuring program.
The transaction requires approval by the U.S. Federal Trade Commission (FTC). Financial details were not disclosed. Morgan Stanley acted as financial advisor to BASF in this transaction.
As part of the agreement, BASF will transfer approximately 140 employees to INEOS. The Joliet polystyrene facility has a total capacity of approximately 385,000 metric tons per year and produces general-purpose polystyrene (GPPS) and high-impact polystyrene (HIPS).
“The Joliet site is no longer consistent with BASF’s site integration strategy,” said Fred Baumgartner, Global President of Styrenics for BASF. “While we are committed to our remaining styrenics portfolio in North America, the sale of this business is another major step in our process of realigning the global styrenics business to ensure long-term profitable growth,” Baumgartner added.
BASF also remains committed to the polystyrene business on a global scale, and will continue to manufacture and sell polystyrene in other regions. BASF is the second-leading supplier of polystyrene in the world, and was the fourth largest producer of polystyrene in the United States and Canada. The company has sold polystyrene in the region continuously since 1992, when the company purchased the Joliet facility from Mobil Chemical.
"INEOS continues to seek acquisition opportunities in the chemical and polymer business, typically from major chemical corporations which combine excellent people, assets and market positions," said Andy Currie, Director at INEOS Capital Ltd. “The BASF U.S. and Canadian polystyrene business, which includes the second largest U.S. facility at Joliet, Ill., meets all of these criteria and we look forward to welcoming the employees to INEOS.”
INEOS is a rapidly growing global manufacturer of specialty and intermediate chemicals and polymers. It comprises seven businesses, each with a major chemical company heritage, and its production network includes 43 manufacturing facilities in 14 countries throughout the world. In 2004, INEOS had approximately 7,000 employees and sales of more than $7 billion.
http://www.basf.com