- Methanex will acquire OCI's methanol business for $2.05 billion.
- The deal includes two methanol plants in Texas and a facility in the Netherlands.
- The transaction is expected to close in the first half of 2025.
- Methanex anticipates $275 million in annual EBITDA from the acquisition.
Acquisition Overview
Methanex Corporation has signed a definitive agreement to acquire OCI Global’s international methanol business for $2.05 billion. The acquisition includes OCI’s interest in two methanol facilities in Beaumont, Texas, a low-carbon methanol production and marketing business, and an idled methanol facility in the Netherlands.
Strategic Fit
The Beaumont plants benefit from North America’s abundant and favorably-priced natural gas feedstock, expected to increase Methanex’s global methanol production by over 20%. The transaction aligns with Methanex’s strategic objectives of industry leadership, operational excellence, and financial resiliency.
Financial Impact
Methanex expects the acquisition to add $275 million in annual Adjusted EBITDA to its expected run-rate Adjusted EBITDA of $850 million at a $350/MT realized methanol price. The company plans to maintain financial flexibility and has a robust financing plan to support de-levering to its target range within approximately 18 months from closing.
Transaction Details
The $2.05 billion purchase price consists of $1.15 billion in cash, the issuance of 9.9 million common shares of Methanex valued at $450 million, and the assumption of $450 million in debt and leases. The transaction is expected to close in the first half of 2025, subject to regulatory approvals and other closing conditions.
Advisors
Methanex’s financial advisors for the transaction were Deutsche Bank and RBC Capital Markets. Legal counsel included McCarthy Tétrault LLP, Baker McKenzie LLP, Loyens & Loeff N.V., and Reed Smith LLP. Deutsche Bank and RBC Capital Markets provided fairness opinions to Methanex’s Board of Directors.
