Indorama Ventures Public Company Limited’s Acquisition of M&G Polimeros Brazil S.A. in Ipojuca Brazil


HSBC is serving as financial advisor, KPMG is serving as Finance and Tax due diligence advisors, and Mattos Filho & Lowenstein Sandler is serving as Legal advisors.

Indorama Ventures Public Company Limited (IVL), a global chemical producer, has announced that it has entered into an agreement to acquire M&G Polimeros Brazil S.A. in Ipojuca Brazil. The plant is the largest PET facility in Brazil, with capacity of 550,000 tonnes/ annum. This plant is strategically located and benefits from virtual integration with a manufacturer of Purified Terephthalic Acid (PTA), a key feedstock to PET.

The transaction is expected to be completed in second quarter 2018, subject to regulatory approvals.

This acquisition in Brazil is in line with the Company’s strategy to further extend its market position, and expand its global footprint in key markets with high growth potential. This strategic position allows Indorama Ventures to deliver products to key customers in Brazil and elsewhere in a cost-effective and efficient manner. Indorama Ventures is well positioned to service its current global client base and M&G’s existing customers once this acquisition is complete and the plant is fully operational. The Company expects immediate incremental revenues and cost synergies, driven by a substantial volume increase and potential value add through backward integration.

South America is an important emerging market with domestic demand for PET growing at around 5%. Today’s per capita consumption of PET is comparatively low at 2.8 kg and has great potential for growth. Brazil also has strong underlying fundamentals, supported by government policies to stimulate economic growth and strengthen the domestic market.

Indorama Ventures Public Company Limited, a DJSI member, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America. The company’s portfolio comprises Necessities and High Value-Added (HVA) categories of Polymers, Fibers, and Packaging, selectively integrated with self-manufactured Ethylene Oxide/Glycols and PTA where economical. Indorama Ventures products serve major FMCG and Automotive sectors, i.e. Beverages, Hygiene, Personal Care, Tire and Safety segments. Indorama Ventures, led by Sri Prakash Lohia, Aloke Lohia and Dilip Kumar Agrawal, has approx. 15,000 employees worldwide and consolidated revenue of US$ 8.4 billion in 2017.

Lowenstein advised Indorama Ventures Public Company Limited with Nicholas San Filippo IV (Picture), Sam E. Khan, Nicholas G. Mehler, and Angelo Cerimele

Involved fees earner: Nicholas San Filippo IV – Lowenstein Sandler LLP; Sam Khan – Lowenstein Sandler LLP; Angelo Cerimele – Lowenstein Sandler LLP; Nicholas Mehler – Lowenstein Sandler LLP;

Law Firms: Lowenstein Sandler LLP;

Clients: Indorama Ventures Public Company Limited;