Axiall Corporation and ALTIVIA Sign Definitive Agreement on Asset Sale
ATLANTA--(BUSINESS WIRE)--Feb. 26, 2015-- Axiall Corporation (NYSE: AXLL), a leading integrated chemicals and building products company, signed a definitive agreement to sell its La Porte, Texas, chemical manufacturing facility to ALTIVIA Chemicals, LLC. Financial terms of the agreement, which is subject to customary closing processes, were not announced. The transaction is expected to close within 45 days.
The Axiall facility at La Porte manufactures phosgene and its derivatives, which are used in the polymer, pharmaceutical and agricultural chemicals industries. It is the largest North American production facility of merchant phosgene derivatives, including chloroformates and acid chlorides.
ALTIVIA Specialty Chemicals, LLC, headquartered in Houston, is an experienced manufacturer and distributor of chemicals used primarily for municipal and industrial water treatment, oil field drilling and production operations, and pulp and paper production. In 2012, the company expanded its specialty chemicals line with the addition of ferric and ferrous sulfate to its portfolio. It also recently added aluminum chlorohydrate to its product line to broaden its coagulant offerings and expand into new applications with aluminum-based chemistry.
“The acquisition of this world-class chemical production facility creates sufficient scale to enable ALTIVIA to compete globally,” said ALTIVIA Chief Executive Officer J. Michael Jusbasche. “We now have state-of- the-art facilities with an excellent safety record and an experienced research and development team that will enable us to produce new products for specialized applications.”
“As we refine our portfolio, we are pleased to reach an agreement with ALTIVIA, where we believe our phosgene business will be a better strategic fit,” said Axiall President and CEO Paul Carrico. “Axiall will provide transition services to ALTIVIA to help its experienced management team achieve a smooth assumption of the business.”
Axiall was advised in the transaction by Balmoral Advisors.
Headquartered in Houston, Texas, privately held ALTIVIA was founded in 1986 and is the leading regional producer of iron-based salts. With manufacturing facilities in Houston, ALTIVIA serves municipal and industrial customers with a broad range of chemical solutions, including products formulated for specific water treatment applications. Products manufactured by ALTIVIA include ferric and ferrous sulfate. ALTIVIA sold its commodity chemicals business to Brenntag A.G. in December 2012.
Axiall Corporation is a leading integrated chemicals and building products company. Headquartered in Atlanta, Axiall has manufacturing facilities located throughout North America and in Asia to provide industry-leading materials and services to customers. For more information, visit www.axiall.com.
Source: Axiall Corporation
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