- Stepan acquired INVISTA's aromatic polyester polyol business for $100 million in global sales.
- The acquisition includes manufacturing sites in Wilmington, NC, and Vlissingen, the Netherlands.
- The deal was financed with cash on hand and is expected to be accretive to EBITDA margins.
- Further details will be discussed in Stepan's Q4 and full-year 2020 results call on February 18, 2021.
Acquisition Details
Stepan Company has acquired INVISTA's aromatic polyester polyol business, including two manufacturing sites located in Wilmington, NC, and Vlissingen, the Netherlands. The transaction also encompasses intellectual property, customer relationships, inventory, and working capital. The acquired business has global sales of approximately $100 million.
Financial Impact
This acquisition was financed with cash on hand and is expected to be accretive to Stepan's EBITDA margins. The deal is anticipated to enhance Stepan's manufacturing capabilities in both the United States and Europe, supporting the growth of its global rigid polyol business.
Strategic Benefits
Stepan expects that INVISTA's available spare capacity, along with debottlenecking opportunities at both plants, will enable the company to support market growth efficiently. The long-term prospects for rigid polyol use in insulation are strong, driven by energy conservation efforts and stricter building codes. The acquired technology is expected to accelerate product leadership initiatives, improve manufacturing efficiencies, and increase market value.
Future Updates
Management will provide more details on this acquisition during Stepan Company's fourth quarter and full-year 2020 results conference call on February 18, 2021.
