Ineos Acquires North America’s Calabrian
Ineos Enterprises, a portfolio unit of the Swiss-based chemical group, has purchased Calabrian Holdings from private equity firm SK Capital at the end of July for an undisclosed sum. Based in Kingwood, Texas, Calabrian claims North American market leadership for liquid sulfur dioxide and sodium-based derivatives. It has a production plant in Port Neches, Texas, that supplies markets in North and South America, and another 35,000 t/y facility currently under construction in Timmins, Ontario, Canada. Once the latter starts up in the fourth quarter of 2016, total capacity for both plants will be around 200,000 t/y.
The US company also owns a proprietary technology – SO2Clean – which is said to offer competitive advantages through its low cost, low capital required, modular design and environmental profile. Ashley Reed, CEO of Ineos Enterprises, said the assets have an excellent cost position and logistics infrastructure and complement Ineos’ existing sulfur chemicals portfolio. He added that additional synergies with its European business would be explored. Ineos beefed up its European sulfur chemicals business in December 2015 with the acquisition of Spanish producer Befesa Valorizacion de Azufre.
SK Capital partnered with the founding family of Calabrian in 2011 to recapitalize the company and drive further growth. The chemical company’s CEO, Randy Owens, said Ineos’ global infrastructure will allow the next phase of growth by accelerating geographic expansion and further advancing its technology strategy.
