INEOS Barex AG has signed a binding agreement to acquire the polyacrylonitriles business from Mitsui Chemicals Inc. The company says the agreement brings together complementary capabilities and synergies of both businesses and secures the long term supply of PAN resin and Zexlon film to Mitsui customers across Asia. The value of the transaction was not disclosed.
Polyacrylonitrile resins are inert products manufactured by Mitsui Chemicals Inc. under license, at its Nagoya works. Film and sheet applications include pharmaceutical and medical packaging to in the Asia Pacific region.
INEOS is the leading supplier of polyacrylonitrile co-polymers, sold under the Barex Trademark, primarily in the European and North American Market. The company says it is committed to the long-term growth of its Barex business and continues to invest in its plant, personnel and products, securing future business growth. INEOS Barex products are substitutes for Mitsui PAN resin Zexlon film products.
On completion of the deal, INEOS will immediately take over responsibility for sales and marketing to all Mitsui PAN resin and Zexlon film customers and will work closely with them to obtain necessary approvals and make the transition to INEOS Barex products. Mitsui production will be continued for sufficient time for approvals to transition to INEOS Barex products. The deal comprising the sales, marketing, and supply of PAN resin and Zexlon film is expected to be completed on August 1, 2013.
CEO David Schmidt says: “The transfer of this business to INEOS Barex AG provides a very close strategic fit. The proposed agreement is good news for all parties involved. Most importantly it will provide significant benefit to customers through ongoing, reliable access to Barex ®, PAN resin and Zexlon™ film”.
Barex is a specialized acrylonitrile-methyl acrylate co-polymer that has both US Pharmacopeia and FDA clearances for medical and pharmaceutical packaging. The chemistry behind Barex makes it readily convertible into film, sheet and bottles on standard equipment using extrusion, injection and calendaring techniques.
Barex resins provide chemical resistance essential for packaging aggressive active ingredients that need to stay inside the packaging while also providing excellent oxygen barrier properties.
