Stepan Announces Agreement to Acquire Sulfonation Production Facility in
NORTHFIELD, Ill., July 15, 2014
NORTHFIELD, Ill., July 15, 2014 /PRNewswire/ -- Stepan Company (NYSE: SCL),
through its subsidiary in Brazil, today reported that it has reached an
agreement with Procter & Gamble do Brasil S.A. to acquire their sulfonation
production facility in Bahia, Brazil subject to approval by the Brazilian
antitrust authorities and by the Industrial Development Superintendence of
Bahia State, as well as other customary closing conditions. The facility is
located in the northeast region of Brazil and has 30,000 metric tons of
The transaction is projected to close in the third or fourth quarter and the
acquisition is expected to have a minimal impact on Stepan's 2014 financial
results. Financial terms of the transaction were not disclosed.
"This acquisition will expand Stepan's capabilities in Brazil.Brazil is the
world's fifth most populous country and has a growing middle class. As the
country's usage of laundry products transitions from soap bars to powders to
liquids, surfactant use expands. Surfactants used in functional applications,
including the large Brazilian agricultural industry, are also increasing.
Brazil is a strategic priority for Stepan; this acquisition is synergistic
with our existing Vespasiano, Brazil plant and provides an opportunity to
serve the growing northeast of Brazil." said F. Quinn Stepan Jr., President
Stepan Company is a major manufacturer of specialty and intermediate chemicals
used in a broad range of industries. Stepan is a leading merchant producer of
surfactants, which are the key ingredients in consumer and industrial cleaning
compounds. The Company is also a leading supplier of polyurethane polyols
used in the expanding thermal insulation market and C.A.S.E. (Coatings,
Adhesives, Sealants, and Elastomers) industries.
Headquartered in Northfield, Illinois, Stepan utilizes a network of modern
production facilities located in North and South America, Europe and Asia.
The common stock is traded on the New York Stock Exchange (NYSE) under the
symbol SCL. For more information about Stepan Company please visit the
Company online at www.stepan.com.
Except for historical information, all other information in this news release
consists of forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
are subject to risks and uncertainties that could cause actual results to
differ materially from those projected, anticipated or implied. The most
significant of these uncertainties are described in Stepan Company's Form
10-K, Form 8-K and Form 10-Q reports and exhibits to those reports, and
include (but are not limited to), prospects for our foreign operations,
foreign currency fluctuations, certain global and regional economic
conditions, the probability of future acquisitions and the uncertainties
related to the integration of acquired businesses, the probability of new
products, the loss of one or more key customer or supplier relationships, the
costs and other effects of governmental regulation and legal and
administrative proceedings, including the expenditures necessary to address
and resolve environmental claims and proceedings, disruptions in production at
manufacturing facilities, volatility of raw material and energy costs,
maintaining and protecting intellectual property rights, interruption or
breaches of information technology systems, disruptions in transportation or
significant changes in transportation costs, and general economic conditions.
These forward-looking statements are made only as of the date hereof, and
Stepan Company undertakes no obligation to update or revise the
forward-looking statements, whether as a result of new information, future
events or otherwise.
SOURCE Stepan Company
Contact: Scott D. Beamer, (847) 446-7500
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