Indorama Buys U.S. Ethylene Maker Old World for $795 Million
Indorama Ventures Pcl, Thailand’s largest polyester producer, agreed to buy the ethylene-producing units of Texas-based Old World Industries Ltd. for $795 million.
The company will acquire Old World Industries 1 Ltd. and Old World Transportation Ltd., owners of the single largest U.S. production facility for ethylene oxide and ethylene glycol, Bangkok-based Indorama said in a regulatory filing.
Mono ethylene glycol is one of the key components, together with purified terephthalic acid, in the manufacture of polyethylene terephthalate and polyester fibers and yarns, which Indorama produces, the company said. Clear Lake, Texas-based Old World has the capacity to produce 435,000 metric tons of ethylene products a year, Indorama said.
The acquisition will be financed in part by new credit facilities provided by Siam Commercial Bank Pcl and internal cash, Indorama said in a separate statement on its website. Evercore Partners and HSBC Holdings Plc (HSBA) advised Indorama on the deal, Indorama said.
To contact the reporter on this story: Tony Jordan in Bangkok at tjordan3@bloomberg.net
To contact the editor responsible for this story: Andrew Noel at anoel@bloomberg.net
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