Oman’s Octal Holding, a leading producer of polyethylene terephthalate (PET) laminate products, has signed an agreement to sell 100% of its shares to Mexico-based petrochemical company, Alpek, for $620 million on a debt-free basis.
This acquisition forward-integrates Alpek into the high-value PET sheet market, bridges the gap towards achieving its Environmental, Social, and Governance (ESG) goals, and enhances its ability to serve its customers’ growing PET resin needs, the company said.
The acquisition is expected to increase Alpek’s capacity by more than 1 million tons, in addition to its current capability of producing PET products, polyester, and industrial and specialty chemicals.
The transaction is expected to close in the first half of 2022, subject to customary closing conditions and regulatory approvals. Octal has established itself as a global leader in PET packaging owing to its innovative direct-to-sheet manufacturing technology and early adoption of advanced PET resin manufacturing processes.
“Octal has grown into a globally recognized company and a world leader in PET sheet, with manufacturing facilities and offices in Oman, the US, Saudi Arabia and the UAE and sales of over US$1bn. Innovation, sustainability and expansion have been key enablers in Octal’s success which could only have been achieved with the vision and guidance of our shareholders. Looking ahead, we see a bright future for Octal under Alpek’s ownership.”
With its largest single-site based strategically in Salalah, Oman, and state-of-the-art facilities in USA’s Cincinnati and Saudi Arabia’s Riyadh, Octal effectively ships products to over 75 countries worldwide within 14-18 days.