The parent company of a Teesside chemicals firm has finalised a £494m ($620m) takeover of an Oman-based manufacturer of polyester sheets.
Alpek Polyester, which acquired the former Lotte Chemicals operation in 2019, has completed the purchase of OCTAL after getting regulatory approval.
OCTAL is a major global producer of PET sheet used in packaging and owns the proprietary direct-to-sheet (DPET) technology, which eliminates several energy-intensive conversion steps, resulting in a lowest cost production method for PET sheet.
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The firm has an established customer base across the Americas, Middle East, and Europe and the acquisition adds more than one million tons of installed capacity, spread across four sites, to Alpek’s existing operation.
The deal has been funded debt-free using cash on Alpek's balance sheet and free cash flow generated from existing businesses.
Alpek says OCTAL is highly attractive as it can help the business meet the growing market for 100% recyclable packaging across ready meals, baked goods and other food items.
When intention to acquire OCTAL was revealed earlier this year, Alpek CEO José de Jesús Valdez said it would be an "ideal fit" for Alpek.
He said: "Through a single acquisition we’re able to access the profitable and growing PET sheet segment, acquire differentiated technology that provides a sustainable competitive advantage, significantly advance towards meeting our ESG goals, and serve our customers’ increased PET resin demand.
"“The strength of our 2021 results allows us to complete this attractive acquisition without sacrificing the financial stability that has characterized Alpek."
On completion of the deal he added: “We are pleased to have concluded this acquisition ahead of the expected timeline.
“We are excited to welcome OCTAL’s management team and employees into our family, leveraging their long-standing relationships with customers, their diverse backgrounds, and technical proficiency to drive the Company’s long-term growth.”
