PPG closes on $27mn deal for US chlor-alkali producer Equa-Chlor
US chemicals major PPG Industries announced that it completed its acquisition of certain assets of Equa-Chlor, Inc., a Washington-based producer of chlorine, caustic soda and muriatic acid.
The transaction value was approximately $27mn.
“We are pleased with the successful closing of this acquisition,” said Michael H. McGarry, PPG’s senior vice president of commodity chemicals.
“We have begun to integrate the Longview location [in Washington] into PPG’s chlor-alkali and derivatives business to better serve customers throughout the country,” he added.
As of the closing, PPG acquired and now operates the Longview manufacturing plant with 65 employees, which produces about 220 tons/day of chlorine. In addition, the railcar fleet formerly owned by Equa-Chlor will be integrated into PPG’s rail delivery system, enabling PPG to optimize overall railcar use while reducing future capital requirements and logistics costs, it said.
McGarry also said that the timing of the acquisition is favorable, and it is expected to be accretive to PPG’s earnings within a year, given current industry dynamics.
“Additionally, we anticipate that current supply disruptions in Asia will have a favorable impact on the overall economics of this transaction,” he said.
PPG currently manufactures chlor-alkali and derivates products in Lake Charles, La.; Natrium, W.Va.; Beauharnois, Quebec, Canada; Longview, Wash.; and through a majority-owned subsidiary in Kaohsiung, Taiwan.
These products are used in many end-use markets, such as purifying drinking water and making bleach, paper and pharmaceuticals.
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