US: Stepan has acquired Invista’s aromatic polyester polyol business and associated assets. The business produces polyols for use in polyurethane (PUR) and polyisocyanurate (PIR) foam insulation. It operates two production sites, at Wilmington, North Carolina, US and at Vlissingen in Zeeland in the Netherlands. Its annual sales are US$100m. Stepan plans to finance the acquisition with cash on hand and expects it to be accretive to its 2021 earnings before interest, taxation, depreciation and amortisation (EBITDA) margins.
Chair and chief executive officer Quinn Stepan said, "We are excited to add Invista's polyester polyol capabilities to Stepan. This acquisition expands our manufacturing capability in both the US and Europe, enhances our business continuity capabilities for the market and supports the growth of our global rigid polyol business. We expect that Invista's available spare capacity, plus debottlenecking opportunities in both plants, will allow Stepan to support market growth in a capital efficient way. We believe the long-term prospects for rigid polyol use in insulation remain strong as energy conservation efforts and more stringent building codes should continue to drive market growth. Additionally, we believe the acquired technology will accelerate our product leadership initiatives, drive manufacturing efficiencies and output, and create increased value for the overall market. We look forward to providing the highest level of service to our new customers and are excited to add the new employees and the two new sites to our global polyester polyol manufacturing network."
