The Ineos Group is to sell its fluorochemicals business to Mexichem, a Latin American producer of PVC pipes and resin, chloralkali, hydrofluoric acid and fluorspar.
The deal comprises the international business and assets related to Ineos’s fluorochemical operations located in North America, Europe and Asia.
It is expected that on completion of the transaction, the business will become a global producer of speciality fluorochemicals, with annual sales revenues of more than $500m (£315m).
David Price, chief executive officer of Ineos Fluor, said: ‘The agreement presents a unique opportunity to bring together the world’s largest supplier of fluorspar with our own fluorochemical production assets, customer base and research capabilities.’
Elaborating on the reasons behind the sale, Price added: ‘While performing well, the fluorochemicals business no longer fits within the Ineos Group portfolio as it focuses its attention on its large-scale petrochemicals businesses.’
Ineos Fluor supplies fluorine-based products, technology and services across a number of major industries, from pharmaceuticals to automotive, refrigeration and air-conditioning.
The company employs around 350 people across sites in Europe, North America and Asia.
The sale is expected to be completed at the end of March, subject to necessary regulatory filings and approvals, including bank consent and approvals under applicable antitrust laws and regulations.