NOVA exits styrenics market

Insulating building products supplier PFB Corp. is vertically integrating its expandable polystyrene (EPS) supply via the acquisition of NOVA Chemicals Corp.'s Performance Styrenics business, which includes EPS and Arcel resin products.

NOVA Chemicals will acquire an equity stake in PFB and hold two seats on its board, as part of the deal, with Robert Snyder, VP Performance Styrenics for NOVA also to join PFB as COO.

In a release, PFB stated, "With the world now focusing on sustainable building products, it is the time for our industry to provide vertically-integrated EPS product solutions that provide environmentally friendly alternatives to the construction industry."

The deal's definitive agreements are to be executed during the second quarter, with closing to occur during the second half of 2012, pending the approval of regulators, shareholders, and the boards of NOVA and PFB.

PFB has two subsidiaries: Plasti-Fab Ltd., which operates in Canada, and PFB America, which operates in the U.S. NOVA Chemicals was acquired by Abu Dhabi's International Petroleum Investment Company (IPIC) in February 2009.

NOVA's remaining resin business consists of its polyethylene (PE) brands: Surpass, Sclair, Novapol, suitable for film extrusion, injection molding, rotational molding, and blowmolding. In 1998, NOVA acquired Huntsman's North American and European styrenics businesses.

In addition to insulating concrete forming systems used to build insulated foundations and walls from concrete, PFB supplies Insulspan Structural Insulating Panels Systems (SIPS).