Oman Oil Company (OOC) made the first investment of its kind in its portfolio by acquiring 100% of OXEA, the world’s largest supplier of Oxo chemical products. This investment will enable Oman Oil Company to become a vertically integrated global chemical leader. The agreement was signed by H.E. Nasser bin Khamis Al Jashmi, Undersecretary of the Ministry of Oil & Gas and Chairman of OOC in the presence of Ronald Ayles, Managing Director and Head of Chemicals at Advent International, one of the leading private equity firms worldwide, and Reinhard Gradl, Chairman of the OXEA Group. Upon receipt of antitrust approvals and satisfaction of other conditions, Advent International will sell its entire equity to OOC.
OXEA is ranked first in the world as a supplier of Oxo chemicals to the merchant market and second as producer of Oxo chemicals globally in products like aldehydes, esters and carboxylic acids. OXEA was built from two completely separate businesses which Advent International had acquired in 2007. Within less than seven years Advent created a market leader in the Oxo segment by contributing comprehensive sector and market know how. Today, OXEA has operations in the Americas, Europe and Asia and has the broadest portfolio producing more than 70 Oxo chemicals for customers in a wide range of industries, such as pharmaceuticals, aromas and scents, paints and lacquers, adhesives, safety glass, lubricants, cosmetics and plastics, selling 1.3 million tonnes. This acquisition will expand OOC’s downstream portfolio by bringing world-class technology and knowhow to Oman through existing assets and new investments.
“This landmark acquisition reaffirms Oman Oil Company’s role in supporting the goals outlined in the Sultanate’s Vision 2020 which aims to diversify the economy by reducing dependence on oil, growing In Country Value and maximizing the potential of Oman’s geographic location to reach both established and emerging markets,” said H.E. Al Jashmi. “It is necessary to continue enriching the national economy through strategic ventures that have the right mix of technology and knowhow. This is a monumental step for Oman Oil Company as we continue to expand our global footprint while positioning the Sultanate in the international arena.”
H.E. added, “Oman Oil Company’s approach is to develop the downstream industry value chain by identifying new opportunities that address the business needs of globalization. There is a unique opportunity to build an integrated chemical platform in Oman from our current investment base. We see our acquisition of OXEA as the corner stone for this platform by bringing its technology and expertise to Oman and connecting it to feedstock from our investments in Duqm’s economic zone. This will also contribute to OXEA’s expansion strategy, especially in the Asian growth markets.”
Mulham Al Jarf, Deputy Chief Executive Officer of Oman Oil Company said, “With its strong market position and unique expertise, OXEA will strengthen our position in the global chemical sector and contribute to Oman Oil Company’s long-term downstream strategy. This will provide adequate scope for growth in Duqm’s economic zone as well as other planned projects in industrial areas in Oman. The jobs created in this relatively uncharted sector and especially from projects of this magnitude, will develop a platform for further human capital development and growth.”
“Over the past 6.5 years we successfully diversified our activities and significantly invested in the expansion of capacities and our presence in both, mature and emerging markets. We thank Advent for their support in shaping OXEA and look forward to working together with Oman Oil Company. We are convinced that we can bring in our expertise, technological footprint to support Oman Oil Company’s objectives while at the same time OXEA can benefit from additional access to growth regions in Asia and the Middle East,” said Martina Flöel, Managing Director of OXEA on behalf of the management board.
Ronald Ayles, Managing Director and Head of Advent International’s chemical practice, said: “OXEA is a highly resilient business with strong sales and earnings growth. We are convinced that the strengths and objectives of Oman Oil Company and OXEA are highly complementary and that both sides will benefit from each other as they pursue their expansion strategy. We wish Oman Oil Company and OXEA all the best on their joint path of growth.”
The core of Oman Oil Company’s success has been attracting foreign interest by executing projects that expand economic sectors and provide new employment opportunities. OOC has led the way with 40 investments in 12 countries using extensive insight across a variety of industries. The company continues to be proactive in identifying potential areas of opportunity that will maximise downstream economic value. OOC’s emphasis remains on sustainable investments from existing assets and selective growth investments to add in country value.