PFB to acquire Performance Styrenics business from Nova Chemicals
PFB International, a subsidiary of PFB Corporation (PFB), has signed a letter of intent with Nova Chemicals to purchase its Performance Styrenics business.
The acquisition also includes Nova Chemicals' expandable polystyrene (EPS) and Arcel resin products. The purchase is intended to help PFB provide construction materials-based products in the US, to match PFB's Plasti-Fab operations in Canada.
Bruce Carruthers, Plasti-Fab chief operating officer, said: "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."
Nova Chemicals will hold an equity stake in PFB and acquire two seats on PFB's Board of Directors on completion of the acquisition, which is subject to regulatory approval, as well as approval from Nova Chemicals' Board of Directors and other customary conditions.
PFB CEO C. Alan Smith said 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," Smith said.
Robert Snyder, Nova Chemicals Performance Styrenics vice president, said: "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."
Definitive agreements are expected to be closed in the second half of 2012.