Stepan to acquire Procter & Gamble's sulfonation production facility in Brazil
Mary Page Bailey
Stepan Co. (Northfield, Ill.; www.stepan.com), through its subsidiary in Brazil, has reported that it has reached an agreement with Procter & Gamble do Brasil S.A. to acquire their sulfonation production facility in Bahia, Brazil subject to approval by the Brazilian antitrust authorities and by the Industrial Development Superintendence of Bahia State, as well as other customary closing conditions. The facility is located in the northeast region of Brazil and has 30,000 metric tons per year (m.t./yr) of capacity. The transaction is projected to close in the third or fourth quarter and the acquisition is expected to have a minimal impact on Stepan's 2014 financial results. Financial terms of the transaction were not disclosed.
"This acquisition will expand Stepan's capabilities in Brazil. Brazil is the world's fifth most populous country and has a growing middle class. As the country's usage of laundry products transitions from soap bars to powders to liquids, surfactant use expands. Surfactants used in functional applications, including the large Brazilian agricultural industry, are also increasing. Brazil is a strategic priority for Stepan; this acquisition is synergistic with our existing Vespasiano, Brazil plant and provides an opportunity to serve the growing northeast of Brazil." said F. Quinn Stepan Jr., president and CEO.