Client stories

Helping fund INEOS Enterprises’ acquisition of ASHTA

Chemical components are essential to the production ecosystem

Formed in 2001, INEOS Enterprises is a UK-headquartered producer of specialty and intermediate chemicals with 25 manufacturing plants across Europe, North America, and Asia. INEOS Enterprises’ products are used as an essential input across a broad variety of end markets and sectors such as paints, coatings, construction, automotive, packaging, and medical devices.

In October 2022, INEOS Enterprises announced the acquisition of ASHTA Chemicals, a North American chlorine and potassium hydroxide manufacturer. The deal presents an excellent strategic fit for the long-term local supply and use of chlorine between ASHTA and INEOS Pigments. In addition, ASHTA Chemicals will bring a well-established and respected North American potassium hydroxide business into the INEOS Enterprises portfolio.

New bank term loan helps INEOS Enterprises fund acquisition of ASHTA and partly repay existing debt

Seeking financing for the acquisition of ASHTA as well as aiming to repay its existing Term Loan A, INEOS asked NatWest to support the transaction in the role of Joint Global Coordinator and Ratings Advisor. With the ASHTA acquisition funded in US dollars, INEOS Enterprises was also looking to split the new debt facility into a larger dollar tranche and a euro tranche to pay-off the company’s existing Term Loan A.

Launching a €350 million syndication into the market, both incumbent banks and new lenders showed appetite, resulting in a considerable oversubscription of the transaction. The strong demand helped INEOS Enterprises secure attractive terms for its new bank facility – despite challenging market conditions – and opt for the €200 million-equivalent dollar tranche and the €150 million euro tranche they wanted.

NatWest’s one-bank approach delivers best outcomes for customers

Sam Andrews, Investor Relations Manager of INEOS Enterprises, commented:We are very pleased to have secured this new funding which will allow INEOS Enterprises to continue its growth through improved access to key feedstocks via the ASHTA acquisition. We thank NatWest for their consistent support and joined-up approach across origination, syndicate, and ratings advisory which really smoothed the process. The team has delivered a great outcome for INEOS Enterprises.”

Richard Bradbury, Managing Director, Leveraged & Acquisition Finance, NatWest, said: “This transaction continues our longstanding support of the INEOS Enterprises team, and we were delighted to help them in securing financing to support INEOS Enterprises’ strategic acquisition of ASHTA. Gathering this demand from lenders in a tough market is a testament to INEOS Enterprises and its management team. While this transaction is a great example of multiple specialist teams within NatWest working closely together as one bank to ensure quick decision making and deliver the best outcome for our customer.”

Disclaimer

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