By Gary Thomas
PFB, a company specialized in manufacturing insulating building products, has signed a letter of intent (LOI) with NOVA Chemicals, a developer and manufacturer of plastic resins, chemicals and end-products, to acquire NOVA Chemicals’ Performance Styrenics business. The acquisition includes ARCEL resin products and the expandable polystyrene (EPS) resins.
Both the companies anticipate to enter definitive agreements in the second quarter of 2012 and to end the process in the latter half of the year. The acquisition process involves signing of definitive agreement, regulatory approval and other customary conditions, which include approval from PFB’s Board of Directors and shareholders and NOVA Chemicals’ Board of Directors. Through the acquisition of the Performance Styrenics business of NOVA Chemicals, PFB International will be able to offer vertically-integrated EPS products as environmentally friendly substitutes for the construction industry.
C. Alan Smith, PFB’s CEO, noted that they are happy to integrate NOVA Chemicals’ high quality EPS resins and experience into their business. Through the partnership, both the companies can jointly serve their customers in a better way by offering superior products to the market, added Smith. For several years, NOVA Chemicals has been a major producer of moldable foam resins in North America and the resins are used in cup and container, protective packaging and building insulation applications.