LUXEMBOURG, Nov. 13, 2014 /PRNewswire/ -- M&G Chemicals, a chemicals manufacturing and engineering company and a leading global supplier of polyethylene terephthalate ("PET"), announced today that it recently signed an agreement to issue USD $300 million in new equity to TPG Opportunities Partners and affiliated funds ("TPG"). As part of the transaction, TPG will take a minority stake in the Company. The transaction is subject to customary regulatory approvals.
Marco Ghisolfi, CEO of M&G Chemicals, said, "This capital infusion will not only enable us to grow and solidify our position as a leader in the global PET market, but will also allow us to take advantage of market opportunities as they arise. M&G Chemicals remains committed to investing in the development of innovative PET products that serve the needs of our customers, both today and in the future." He added, "I would like to thank our new TPG partners for their confidence; their investment is enhancing our financial strength and flexibility to execute our strategic vision."
M&G Chemicals has several large expansion projects underway, including construction of the world's largest integrated PTA/PET facility in Corpus Christi, Texas, as well as a project in Fuyang City, China to develop and industrialize a green PET supply chain of raw materials from renewable sources.
In a statement, TPG said: "We believe that M&G Chemicals' projects are very unique in the polyester space and we look forward to supporting the company in their execution."
Rothschild served as financial advisor to M&G Chemicals.
About M&G Chemicals
M&G Chemicals is among the three largest producers of PET resin for packaging applications in the world, and the second largest in the Americas, in terms of nominal capacity with 1,600 kMT/year, with nearly 1.4 MMtons/year of installed capacity. The Company employs more than 900 employees in 14 locations in six countries around the world. In 2013 M&G Chemicals posted an annual revenue of €1,675 million.
M&G Chemicals has manufacturing locations in Brazil, Mexico and the USA. Its plants in Suape, Brazil and Altamira, Mexico are the two largest single lines and most efficient in the world (measured in terms of operating costs per metric ton), and are based on proprietary technology. Through its engineering division Chemtex, M&G Chemicals provides technological development, research and engineering services for the construction of plants for customers in the polyester chain (including PET, polyester fibre and PTA production) and LNG industries. These activities are also aimed at enabling the production of PET resin made entirely from renewable sources. M&G Chemicals is an affiliated entity with the Mossi Ghisolfi Group. For further information: www.mg-chemicals.com
TPG was founded in 1992 and has $66 billion of assets under management and offices in San Francisco, Fort Worth, Austin, Dallas, Houston, New York, Beijing, Hong Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, Sao Paulo, Shanghai, Singapore and Tokyo. The firm's investments span a variety of industries including healthcare, energy, industrials, consumer/ retail, technology, media & communications, software, financial services, travel, entertainment and real estate. For more information visit www.tpg.com.
TPG Opportunities Partners and its related businesses comprise over $10 billion of assets under management.
SOURCE M&G Chemicals