INEOS to sell its composites business to KPS for €1.7 billion, transaction expected to close in first half of 2025
In its release outlining the definitive agreement with INEOS, KPS is not understated in that it states that, upon completion of the sale, it would own the composites business with an estimated figure of about 1.7 billion euros. The closure is thought to be possible during the first half of 2025. INEOS composites consist of an unsaturated and vinyl ester resin and gelcoats which are used for producing plastic composites for the largest end markets globally. The business purportedly has around 800 million euros in annual sales and employs nearly 900 people. It is thought to possibly operate with 17 production sites across Europe, North America, South America, Asia, and the Middle East, and three more research facilities.
The diverse resins manufactured by this company give the end-user the selection to optimize products on the basis of corrosion resistance, flameproofing, UV resistance, water resistance and chemical resistance, thermal insulation, electric insulation, and impact and scratch resistance; all exhibit a remarkable strength-to-weight ratio. KPS shows that, as of September 30, 2023, this private investment group operates some $21.4 million of assets. Their funds have longstanding track records for acquiring and managing investments in manufacturing and industrial companies across sectors such as basic materials; branded consumer products; healthcare and luxury goods; automotive parts; capital equipment; and general manufacturing.
INEOS shuts down several factories
A month ago, INEOS announced that it would shut down its ABS (acrylonitrile-butadiene-styrene) polymer production facility in Addyston, Ohio, permanently and plans to initiate official closure in the second QT 2025. The acrylonitrile-butadiene-styrene (ABS) and styrene-acrylonitrile (SAN) polymers produced by the plant mainly serve the automotive, household, healthcare, and construction sectors. The announcement cited intense competition in the global ABS marketplace in recent years, chiefly the impact of overseas imports on the North American market since then, as the primary reason for the closure.
On 24th October 2023, INEOS Styrolution became public about its decision not to restart in Sarnia, Ontario, Canada, a styrene plant that had been capable of producing 445,000 tons of styrene and 490,000 tons of ethylbenzene annually. The closure now stands unaltered for permanent shut-down at the end of Q3 through Q4 of 2024. The plant was temporarily closed way back around the month of April due to complaints raised by the residents living around the site.
INEOS O&P UK announced closure of the Grangemouth ethanol plant in Scotland in the first quarter of 2025 on the 19th of March. The reason resulted due to reduced ethanol demand in Europe and ethanol import pressure from other regions. Consequently, the ethanol business has plunged into layers of loss for several years now in the Grangemouth plant.
