MONHEIM, Germany - Specialty chemicals supplier Cognis has announced the sale of its 50-percent stake in the Cognis Oleochemicals joint venture to PTT Chemical International Private Ltd. (PTT Chemical International), a Singapore-based wholly owned subsidiary of PTT Chemical Public Co. Ltd. (PPT Chemical). PTT Chemical is Thailand’s largest producer of olefins and associated products. The sale is in line with Cognis’ strategy of focusing on its core businesses driven by the wellness and sustainability trends. The transaction is expected to be completed by the end of September 2008.
Cognis sold its stake in the joint venture company for about EUR 104 million in cash, representing an enterprise value of EUR 285 million for the whole joint venture company.
Cognis already has established a successful relationship with PTT Chemical. In 2005, the company founded Thai Ethoxylate Ltd., a 50-50 joint venture and Thailand’s first producer of fatty alcohol ethoxylate. 2006 saw the founding of Thai Fatty Alcohols Co. Ltd., a 50-50 joint venture between Cognis and PTT Chemical’s subsidiary Thai Oleochemicals for the production and marketing of fatty alcohols.
Cognis Oleochemicals is a producer of natural-based oleochemical. It operates production sites in Europe, North America and Asia and achieved sales of EUR 729 million, including EUR 130 million deliveries to Cognis in 2007. The company will continue to operate under the Cognis Oleochemicals name for an interim period until a new name is established.