Methanex (MX) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition adds world-scale, U.S.-based methanol assets with secure, low-cost feedstock, aligning with strategic pillars of leadership and operational excellence.

• Diversifies into ammonia and low-carbon methanol markets, leveraging complementary operations and OCI HyFuels' expertise.

• Provides immediate cash flow and no construction risk, with acquisition cost per ton below brownfield replacement costs.

• Enhances global production capacity by over 20% and strengthens position in low-carbon fuels.

• Entry into ammonia production offers new revenue streams and exposure to low-carbon fuel markets.

Financial terms and conditions

• Purchase price is $2.05 billion: $1.15 billion in cash, 9.9 million shares (~$450 million), and $450 million in assumed debt and leases.

• OCI will hold approximately 13% of the acquiring company post-transaction.

• Fully committed $1.2 billion debt financing secured, with deal funded by cash on hand and new debt.

• Transaction structured to maintain financial flexibility and BB credit metrics.

• Implies a 7.5x Adjusted EBITDA multiple at a $350/MT methanol price, including synergies.

Synergies and expected cost savings

• $30 million in annual synergies expected by year two, mainly from logistics optimization and SG&A improvements.

• Additional value anticipated from operational integration and best-practice sharing.

• Low integration costs projected due to similar operating models.