Nova Chemicals Corp. (Calgary, AB, Canada) today announced that it has completed the previously announced acquisition of Williams Partners L.P.’s indirect 88.46% ownership interest in the Geismar, LA, olefins plant. As part of the deal, Nova Chemicals now owns approximately 525 acres of undeveloped land adjacent to the plant and Williams’ interest in the Ethylene Trading Hub in Mt. Belvieu, TX.
“This is a game changer for our company, as it marks our entry into the U.S. Gulf Coast, which allows us to better serve our customers in the Americas,” said Todd Karran, Nova President and CEO. “We are particularly pleased to welcome our talented new employees to Nova Chemicals and look forward to meeting and working alongside our new customers, suppliers and the communities in Louisiana and Texas.”
The plant produces approximately 1.95 billion pounds of ethylene annually and is located in the U.S. Gulf Coast region, the largest refining and petrochemical production hub in North America. With riverfront access, the adjacent land represents a significant opportunity for future growth, said the company.
This acquisition fulfills a top priority of Nova Chemical’s growth strategy, as stated on its website: To grow significantly “beyond our traditionally Canadian production footprint, which includes gaining additional access to the U.S. Gulf Coast feedstock and supplying our customer markets in the Americas.”
Earlier this year, Nova Chemicals announced the start up of its new world-scale linear low-density polyethylene (LLDPE) gas phase reactor at its Canadian site in Joffre, AB. This is the first new LLDPE reactor in the Americas in more than a decade. To learn more: "Nova Chemicals launches first new LLDPE reactor in Americas in more than 10 years."
HSBC Securities (USA) Inc. acted as exclusive financial advisor to Nova Chemicals on today's completed acquisition. Orrick, Herrington & Sutcliffe LLP and Liskow & Lewis acted as legal counsel. Barclays and HSBC Securities (USA) Inc. acted as lead arrangers on the permanent financing of the acquisition. Orrick, Herrington & Sutcliffe LLP acted as legal counsel.