Stepan Buys Brazilian Sulfonation Assets
US specialty chemicals company Stepan is expanding in Brazil with the purchase of additional sulfonation assets. Terms have been agreed with Tebras Tensoativos do Brazil (Tebras) to buy its commercial business and with PBC Industria Quimica (PBC) to take over its sulfonation production plant.
The combined entities have annual sales of roughly $32 million and sulfonation capacity of 25,000 t/y. Both agreements are subject to the usual closing conditions and are expected to close in the fourth quarter of 2016. Financial details have not been disclosed.
Stepan’s president and CEO Quinn Stepan Jr said the acquisition is expected to expand and diversify its customer base for sulfonated products in Brazil and provide an opportunity to sell its broader surfactant portfolio to more than 1,200 new customers. He added that, over time, Stepan plans to produce additional product lines at the new site within the greater Sao Paulo area.
The acquisitions are expected to be slightly accretive to earnings in the first full year of ownership.
