Blackstone agrees $792m sale of Australia chemicals business
The Blackstone Group has agreed to sell Ixom, a chemicals business it carved out from Australia’s Orica three years ago, to Keppel Infrastructure Trust (KIT) for approximately A$1.1 billion ($792 million).
The transaction will be initially funded through debt, with Keppel Infrastructure Holdings – which owns 18.2% of KIT – set to participate in a subsequent equity fundraising, according to a filing.
Based in Australia and New Zealand, Ixom claims to be the market leader in water treatment and chemical distribution, supplying customers in agriculture, mining, life sciences, and construction. It is the sole manufacturer of liquefied chlorine in Australia, as well as a leading provider of caustic soda and sulfuric and nitric acids. Brands include Bronson & Jacobs, Keith Harris, Miex, and FarmGuard.
The company, which has more than 1,000 employees globally, is also building its business in the Americas and Asia. Revenue came to A$1.23 billion for the 2018 financial year, while EBITDA reached A$134 million.
Orica moved to divest the business in 2014 to focus on its mining services operations. The decision coincided with uncertainty in global resources markets that had already hit Orica’s financial performance and prompted substantial job cuts. Blackstone paid A$750 million for the chemicals division.
KIT has a market capitalization of approximately S$1.76 billion ($1.28 billion) and is managed by Keppel Capital, the asset management arm of Singapore conglomerate Keppel Corporation. The trust’s portfolio comprises a range of gas distribution assets, waste-to-energy plants, desalinization facilities, data centers, and renewable energy assets. Most of these are in Singapore.
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