Nova, PFB terminate deal for Nova's performance styrenics business

Houston (Platts)--16Nov2012/342 pm EST/2042 GMT


Nova Chemicals and PFB on Friday terminated plans for PFB to acquire its fellow Canadian company's performance styrenics business, Nova said.

With the collapse of the deal, Nova will retain and continue to operate its performance styrenics business, which includes its expandable polystyrene and ARCEL resin products, the company said.

"It had become apparent to both Nova Chemicals and PFB that PFB would be unable to complete certain steps necessary to consummate its planned expansion of PFB's vertically integrated, construction materials focused products offering in the United States. As a result, both parties decided to terminate the letter of intent," it said.

The companies signed a letter of intent on the acquisition May 9.

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Under the May LOI, Nova would have acquired an equity stake in PFB and held two seats on PFB's board after the deal closed and Nova's performance styrenics vice president Robert Snyder would have joined PFB as Chief Operating Office for PFB International.

Nova, which is headquartered in Calgary, Alberta, develops and manufactures chemicals, plastic resins and end-products. Nova's two facilities in the US in Monaca, Pennsylvania, and Painesville, Ohio, produce expandable polystyrene among other products.

PFB, which is also headquartered in Calgary, is a vertically-integrated manufacturer of proprietary insulating building products that are based on expanded polystyrene (EPS) technology.

--Jeremy Rakes, jeremy_rakes@platts.com
--Edited by Keiron Greenhalgh, keiron_greenhalgh@platts.com