Alpek completed the acquisition of Petroquímica Suape and Citepe

Monterrey, Mexico. April 30, 2018 – Alpek, S.A.B. de C.V. (“Alpek”) announced today that it completed the acquisition of Companhia Petroquímica de Pernambuco (“Petroquímica Suape”) and Companhia Integrada Têxtil de Pernambuco (“Citepe”) from Petróleo Brasileiro S.A. (“Petrobras”) through two of its wholly-owned subsidiaries. Pursuant to the purchase agreement, Alpek acquired Petrobras’ 100% stake in the two companies on a debt-free basis for a total amount of U.S. $435 million. The U.S.$385 million agreed upon price was adjusted due to higher working capital and cash balances, plus dollar-denominated inflation, among others.

Petroquimica Suape and Citepe operate an integrated PTA-PET facility in Ipojuca, Pernambuco, Brazil with an installed capacity of 640 and 450 thousand tons per year PTA and PET, respectively. Citepe also operates a 90 thousand tons per year texturized polyester filament plant on site. Alpek will take control of Petroquimica Suape and Citepe’s operations as of May 1, 2018.