(Alpek, 1.Jun.2022) — Alpek, S.A.B. de C.V. has received all necessary approvals from the regulatory authorities and has finalized its acquisition of OCTAL Holding SAOC.
Pursuant to the purchase agreement, Alpek acquired 100% of the shares of OCTAL for U.S.$620mn on a debt-free basis. Financing was secured through a mix of free cash flow generated from existing businesses and dedicated bank loans.
Alpek will assume control of OCTAL’s operations starting on June 1, 2022. The company expects an accretive EBITDA effect of approximately U.S.$120mn from these assets throughout the remainder of 2022, largely based on the better-than-expected Polyester market conditions prevalent in recent months. This would increase the company’s Comparable EBITDA Guidance to U.S.$1,370mn and Reported EBITDA Guidance to U.S.$1,485mn.
“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.”
Alpek is a leading petrochemical company operating two business segments: “Polyester” (PTA, PET, rPET, and polyester fibers), and “Plastics & Chemicals” (polypropylene, expandable styrenics, and other specialty & industrial chemicals). Alpek is a leading producer of PTA, PET resin and PET sheet worldwide, one of the largest rPET producers in the Americas, the third largest expandable polystyrene manufacturer worldwide, and the only producer of polypropylene in Mexico. In 2021, Alpek reported revenues of U.S. $7.7bn and Comparable EBITDA of U.S.$962mn. The company operates 35 plants across the United States, Mexico, Canada, Brazil, Argentina, Chile, Oman, Saudi Arabia, and the United Kingdom, and employs over 6,500 people. Alpek is a publicly traded company listed on the Mexican Stock Exchange.