NOVA to sell North American styrenics unit to PFB
PFB Corp. has agreed to acquire performance styrenics business of Canada’s NOVA Chemicals, including the expandable polystyrene (EPS) and ARCEL resin products, the companies said late Wednesday.
NOVA says it will acquire an equity stake in PFB and hold two seats on PFB’s Board of Directors following closing. Financial terms were not disclosed.
Robert Snyder, vice president of performance styrenics for NOVA, will join PFB as chief operating officer.
NOVA Chemicals and PFB said they expect definitive agreements to be executed during the second quarter, and closing to occur during the second half of 2012.
The acquisition is subject to the definitive agreement being entered into, regulatory approval, and other customary conditions, including the NOVA board of directors’ approval, and PFB’s board and shareholder approval.
“We are extremely excited to have NOVA Chemicals’ experience and quality EPS resins become a part of our business,” said C. Alan Smith, CEO of PFB.
“NOVA Chemicals has long been a leading North American producer of moldable foam resins with a diverse product portfolio serving the construction, packaging, and global cup and container markets. Together we have the opportunity to better serve customers - providing outstanding products to the market.”
that parallels PFB’s Plasti-Fab Canadian operations.
“With the world now focusing on sustainable building products, it is the time for our industry to provide vertically-integrated EPS product solutions that provide environmentally friendly alternatives to the construction industry,” said Bruce Carruthers, chief operating officer of Plasti-Fab. “This is our mission.”
“We are excited about the combined company’s dedicated focus on the growth and development of EPS resins, and their use in building insulation, protective packaging, and cup and container applications,” added Snyder.
Financial terms of the deal were not disclosed.
Calgary-based NOVA Chemicals is a wholly-owned subsidiary of Abu Dhabi’s International Petroleum Investment Company (IPIC).
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