Indorama Ventures PCL of Thailand acquired the chemical business of Old World Industries for $795 million, including its ethylene oxide/ethylene glycol manufacturing facility in Texas.
The business intends to continue its commitment to the U.S. purified EO merchant market, in addition to the current glycol customer base, Indorama said in a statement. Ethylene glycol is used in antifreeze. Old Worlds ethylene glycol customers included a variety of blenders and oil marketers.
According to Indorama, Old Worlds facility in Clear Lake, Texas, is the largest single ethylene oxide/ethylene glycol production facility in the U.S. with crude ethylene oxide capacity of 435,000 tons per annum. The acquisition is expected to be completed later in the first quarter, pending customary approvals.
Old Worlds consumer products division will continue to operate as a privately held corporation out of Northbrook, Ill. Its consumer product lines, which include antifreeze, motor oil and diesel exhaust fluid, will continue to be part of Old World with no changes in personnel or structure. As part of the purchase agreement, Old World will enter into a long-term glycol supply contract with Indorama for its antifreeze production in the United States.
The announcement is a strategic move that will allow Old World to focus all of its time and resources on expanding the Peak family of products in the automotive and heavy-duty marketplaces worldwide, said Tom Hurvis, Old World Industries chairman and CEO.