07.10.15
Stepan Company has signed a long-term supply agreement with The Sun Products Corporation to supply the detergent maker with anionic surfactant requirements for laundry in North America. The agreement is expected to begin in the third quarter of 2015.
Separate from the supply agreement, Stepan also reached an agreement to purchase select chemical manufacturing assets from Sun’s Pasadena, TX manufacturing site.
The sale is expected to close in the third quarter and is subject to customary closing conditions. As part of this agreement Stepan also received an exclusive two-month real estate purchase option on Sun’s property located in Pasadena.
Financial terms of both transactions were not disclosed.
"The supply agreement was made possible due to the strength of our sulfonation expertise and North American supply network, that provide Sun with multiple source locations and increased surfactant flexibility," said F. Quinn Stepan, Jr., president and CEO of Stepan Company. "This agreement allows Stepan to significantly improve its North American capacity utilization."
According to Stepan, Jr., the asset acquisition will enable the firm to redeploy assets as needed to reduce future capital expenditures.
"We are evaluating alternatives for the use of the land and will determine whether to exercise the purchase option on the land," he added.
Separate from the supply agreement, Stepan also reached an agreement to purchase select chemical manufacturing assets from Sun’s Pasadena, TX manufacturing site.
The sale is expected to close in the third quarter and is subject to customary closing conditions. As part of this agreement Stepan also received an exclusive two-month real estate purchase option on Sun’s property located in Pasadena.
Financial terms of both transactions were not disclosed.
"The supply agreement was made possible due to the strength of our sulfonation expertise and North American supply network, that provide Sun with multiple source locations and increased surfactant flexibility," said F. Quinn Stepan, Jr., president and CEO of Stepan Company. "This agreement allows Stepan to significantly improve its North American capacity utilization."
According to Stepan, Jr., the asset acquisition will enable the firm to redeploy assets as needed to reduce future capital expenditures.
"We are evaluating alternatives for the use of the land and will determine whether to exercise the purchase option on the land," he added.