Orrick advised NOVA Chemicals Corporation in an acquisition agreement with Williams Partners L.P. to purchase Williams’ 88.5% ownership interest in the Geismar, Louisiana olefins plant, approximately 525 acres of undeveloped land adjacent to the plant, and Williams’ interest in the Ethylene Trading Hub in Mt. Belvieu, Texas. The total purchase price of the acquisition is $2.1 billion, subject to working capital adjustments.
Upon closing, NOVA Chemicals and Williams will enter into a long-term feedstock supply arrangement for Williams to transport and supply ethane feedstock to support the plant. Closing of the acquisition is subject to customary regulatory approvals and other conditions, but is not subject to any financing condition. The transaction is expected to close in summer 2017.
NOVA Chemicals’ growth strategy is to expand to the U.S. Gulf Coast and leverage next generation technology to better serve its customers in the Americas. The acquisition allows NOVA Chemicals to diversify its geographical footprint with access to significant U.S. shale gas reserves and well established petrochemical and supply chain infrastructure.
The Orrick team advising NOVA Chemicals was led by Brett Cooper, Jonathan Ayre and Puja Parekh, with assistance from Zach Finley, Emin Guseynov, Grady Bolding, Antony Kim, Bob Lawrence, Mitch Pahl, Russell Cohen, Nancy Harris, Darrell Thomas, Pat Zeigler, Harry Clark, Mason Harry and Andrea Memovic.