24 April 2003 16:59 [Source: ICIS news]
HOUSTON (CNI)--BASF has agreed to purchase Sunoco's plasticizer operations for an undisclosed sum.
The deal includes Sunoco's Pasadena, Texas site including the land, phthalic anhydride and oxo manufacturing plants plus the plasticizer esters, 2-ethylhexanol, and phthalic anhydride businesses.
Although the Sunoco Neville Island site is not part of the transaction, it will produce plasticizers for BASF under a tolling agreement, BASF and Sunoco said.
The companies said they have agreed not to disclose additional financial details.
Sunoco's investment in the business, including inventory, is $100m (Euro90.9m). BASF estimated Sunoco plasticizer operations annual sales at about $150m.
BASF will combine the Sunoco assets with its current plasticizer business in North America following required regulatory approval. This transaction is expected to close by the end of the third quarter.
Said Cenan Ozmeral, BASF group vice president/petrochemicals: "Combining these businesses, including the tolling operations of Sterling Chemical in Texas City, Texas will create synergies that provide customer benefits through a more efficient procurement, manufacturing and distribution system."
Sunoco chairman and chief executive John Drosdick said the transaction is an excellent fit for both companies.
He added: "As the Sunoco plasticizer assets become part of BASF's global business there will be greater opportunities for synergy and efficiency improvements. Sunoco Chemicals will continue to focus its efforts on its world-scale phenol and polypropylene businesses."
Sunoco, headquartered in Philadelphia, Pennsylvania is a leading manufacturer and marketer of petroleum and petrochemical products.
BASF Corporation of Mount Olive, New Jersey is the American affiliate of Ludwigshafen, Germany-based BASF.
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