Alpek concludes acquisition of Octal
OIL AND GAS NEWS
Alpek, SAB de CV announced today that it has received all necessary approvals from the regulatory authorities and has finalised its acquisition of Octal Holding SAOC.
Pursuant to a purchase agreement, Alpek acquired 100% of the shares of Octal for $620 million on a debt-free basis. Financing was secured through a mix of free cash flow generated from existing businesses and dedicated bank loans, said a statement.
Octal, established in 2006 has become a recognised leader in PET packaging and the industry reference for superior product performance through continual investment and commitment to improve products and services. DPET® by Octal is the first and only direct-to-sheet polyester sheet in the world manufactured with its patented technology.
Octal's operations span four plants in Oman, Saudi Arabia and US with the largest integrated PET producing site in the world at any single location found in Salalah, Oman.
Alpek will assume control of Octal’s operations starting on June 1. The company expects an accretive EBITDA effect of approximately $120 million from these assets throughout the remainder of 2022, largely based on the better-than-expected polyester market conditions prevalent in recent months, it said.
This would increase the company’s Comparable EBITDA guidance to $1,370 million and reported EBITDA guidance to $1,485 million, it added.
“We are pleased to have concluded this acquisition ahead of the expected timeline,” stated José de Jesús Valdez, Alpek’s CEO. “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.” – TradeArabia News Service
