/https://specials-images.forbesimg.com/imageserve/611b7e70b638e727ae1e702a/0x0.jpg?cropX1=0&cropX2=4299&cropY1=0&cropY2=2419)
Indian-born plastics tycoon, Aloke Lohia, runs Indorama Ventures, the world’s largest producer of … [+]
Nicolas Axelrod/Bloomberg
Indorama Ventures, the chemical producer controlled by billionaire Aloke Lohia, has inked a $1.3 billion deal with Brazilian industrial conglomerate Ultrapar Participacoes to acquire its chemicals unit.
Indorama Ventures said on Monday that it had agreed to acquire Oxiteno, a subsidiary of Sao Paulo-listed Ultrapar that produces ethylene oxide and its derivatives. With Oxiteno’s network of 11 manufacturing plants in Latin America and the U.S., Indorama Ventures said the acquisition would help bring an excellent management team, strong customer relationships and substantial growth potential in attractive end markets.
The deal, which is subject to adjustment, will be financed by deferred payment, free cash flow, working capital and debt, Indorama Ventures said. It is expected to close in the first quarter of 2022.
“This acquisition is a natural fit for us,” Lohia said in a statement. “With Oxiteno, we are creating a global leader in surfactants.”
Workers sort polyethylene terephthalate (PET) bottles on a conveyor at an Indorama recycling … [+]
Brent Lewin/Bloomberg
In 1995, the Lohia family established the first manufacturing site of Indorama Ventures in Thailand. The company has since then been raised to one of world’s largest makers of polyethylene terephthalate (PET), a chemical widely used for food and beverage packaging.
Over the past two decades, Indorama Ventures said it had completed at least 50 acquisitions to expand its footprint in 34 countries. The company booked a 52% year-on-year growth in revenue to $3.6 billion in the second quarter, thanks to economic recovery from the pandemic. It also recorded a net profit of $267 million during the same period, up more than 5,000% from a year earlier.
“From our first PET plant in 1995, we have grown to our current global leadership position through a sound track record of acquiring and integrating new assets and teams that give us scale and differentiate us in the marketplace,” said Lohia in the statement on Monday.
Lohia, who was born in India and lives in Thailand, has a net worth of $3.2 billion, according to Forbes Real-time Billionaire List. The 62-year-old also serves as the vice chairman and Group CEO of Indorama Ventures.