M&A/Liquidation: Ravago acquires majority stake in M Holland; Hengli/Sinochem to wind up Singapore jv

Ravago acquires majority stake in M Holland

Luxembourg-headquartered resin distributor and recycler Ravago Group has acquired a majority stake in US resin distributor M. Holland Co. This transaction will enable M. Holland to accelerate its growth strategy, providing the company with greater scale and resources as the plastics industry continues to rapidly evolve. The founding Holland family will retain a significant stake in M. Holland, though no other financial terms of the transaction were disclosed.

Headquartered in Northbrook, Illinois, M. Holland has over US$1.5 billion in annual sales, partners with more than 4,000 customers annually, and serves over 70 countries across North America, LATAM, EMEA and Asia. M. Holland has offices located in the US, Mexico, Puerto Rico and the Netherlands.

Following close of the transaction, M. Holland will continue to operate independently as a subsidiary of the Ravago Group family of companies. M. Holland’s existing management team, including Ed Holland, CEO and chairman of the board, and Marc Fern, President/COO, will continue to lead the company.

“This transaction is an important inflection point for M. Holland as it places the company on a clear path to continued and long-term success,” said Holland. “Following an exhaustive review of strategic paths, we determined the best way to serve our stakeholders and set up M. Holland for success over the next 70 years was to partner with an organization that shared our passion for employees, customers and suppliers. Ravago Group is that partner. This is a rare opportunity for two strong, family-owned organisations to come together in a way that will ensure our customers get what they need, when they need it for years to come.”

Ravago Group is a plastic production and distribution company, which specialises in polymer and chemical distribution, building materials, recycling and raw materials. Ravago Group operates through three core activities, handling distribution, resale and manufacturing, all of which is supported by its business services and supply chain solutions. Ravago Group has operations in more than 325 locations across North America, Asia, Africa and Europe, with its American headquarters located in Orlando, Florida.

The proposed transaction is subject to customary closing conditions, including the receipt of applicable regulatory approvals.

Hengli/Sinochem to wind up Singapore jv

Meanwhile in other news, Chinese oil refiner and petrochemical manufacturer Hengli Group and the Sinochem Group are winding up their Singapore-based joint venture, Hengli Oilchem, due to business and strategic considerations.

Hengli Oilchem, 79% owned by Hengli and 20% by China’s state-run Sinochem, officially launched its Singapore operation in June 2018.

Hengli Oilchem recently said it had begun a voluntary liquidation following shareholders’ decision.

“It has come to our attention that some of our customers do not fully understand the distinction between a shareholders’ voluntary liquidation and a compulsory liquidation, and thus wrongly concluded that (Hengli Oilchem) and its related companies in the Hengli Group may be in financial difficulties,” Hengli said in a statement, adding that “this was not true”.

Hengli's main trading arm is Hengli Petrochemical International Pte Ltd set up in Singapore in 2017, which trades crude oil, refined fuel and chemical products.

Back in northeast China's port city Dalian, Hengli operates a 400,000 barrels per day refinery and petrochemical facilities including 11.6 million tonnes/year polyester making feedstock PTA.


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