2M snaps up INEOS’ packed chlorine business
INEOS ChlorVinyls, the global plastics manufacturer, has sold its UK packed chlorine business to 2M Group, the privately owned company behind Banner Chemicals.
The value of the deal was not disclosed, but INEOS said the sale comprises he packed chlorine assets at ChlorVinyls’ Runcorn site, together with the associated commercial goodwill of this business. The packed chlorine business supplies chlorine in drums or cylinders to water companies.
Staff working in the packed chlorine business will remain with INEOS and will provide dedicated packing services to 2M Group under a service contract agreement.
The sale is part of INEOS ChlorVinyls’ ongoing review of its product portfolio and the desire to focus on its core businesses.
The company is Europe’s largest PVC manufacturer and has annual sales of more than €3.5bn.
Keith Metcalfe, busines director of INEOS ChlorVinyls said: “Packed chlorine is an excellent strategic fit with the existing businesses operated by 2M Group and they have the necessary expertise to maximise the full potential of this business.”
2M, which is alos based in Runcorn, is owned by its chairman Mottie Kessler. It funded the deal with the support of Investec Growth & Acquisition Finance.
The deal is the third supported by the bank and follows Mr Kessler’s March 2012 buy-out of his co-founder Ieuan Thomas and ehe acquisition of Northampton-based KMZ Chemicals in July that same year.
The acquisition sees 2M enter the industrial gas distribution sector, servicing the UK and Irish water utilities with their chlorine needs.
Tristan Nagler of Investec commented: “We are delighted to support 2M on the INEOS Acquisition, which is our third transaction together. Investec’s financing for 2M blends amortising and revolving debt and provides a framework to support its working capital, investment and acquisitions.”
Ian Gillis and David Mkhitarian from Hill Dickinson’s Manchester corporate team acted for 2M in the deal.
