Ancala acquires portfolio of critical chemical pipeline infrastructure on the U.S. Gulf Coast

The portfolio of sites will be operated by Valentra, a new company created with associates from the former division that operated the sites at Hexion. Valentra's assets are located in Baytown, Texas; Luling, Louisiana; and Geismar, Louisiana.

Valentra's facilities are among the largest pipeline suppliers for methanol-based raw materials, including formalin, in the U.S. Gulf Coast. They are situated on major chemical parks to ensure manufacturers have access to a dependable, high-quality and cost-efficient supply of critical chemical intermediates. The sites supply intermediates directly via pipeline to co-located chemical plants and also support wider industrial demand through offsite distribution. These inputs are critical for producing essential chemicals for the agriculture, healthcare, automotive and construction sectors, and are typically provided under multi-year contracts.

Alex Mihut, former Vice President of Ascend Performance Materials' Global Performance and Specialty Chemicals Business is joining Valentra as CEO on December 8. He will oversee the transition to a standalone platform and lead Valentra going forwards. The team currently operating the Valentra assets within Hexion will be transitioning with the platform. Alex and the Valentra team will deliver continuity of operations and best-in-class service for its customers and broader stakeholders.

Ancala will work closely with Alex and his team to explore organic and acquisitive value creation opportunities. As part of the transaction, around 20 new roles will be created at the company to add to the firm's existing headcount of 55 across its sites.

Lee Mellor, Partner, Ancala, comments:

"Valentra's assets play a critical role in supporting leading global chemicals companies in manufacturing chemicals that are essential to a diverse range of end markets. The portfolio's infrastructure qualities, well invested asset base and long-standing customer relationships make it a natural fit for Ancala's strategy.

"We will be working closely with Alex and the Valentra team to build on the portfolio's strong operational track record."

Alex Mihut, CEO, Valentra, adds:

"I am excited to join Valentra as the business begins its journey as an independent entity with a strong foundation and deep industry expertise. As we move forward, our top priority remains clear: continuing to provide strong support to our existing customers and partners, ensuring stability, reliability and continuity through this transition.

"We are very pleased to be partnering with Ancala to build a platform for long-term growth - one that would allow us to expand our capabilities and bring even greater value to the markets we serve. I am excited to lead this next chapter and look forward to the opportunities ahead for our customers, our team and our business."

The transaction marks Ancala's third investment in North America. The investment follows Ancala establishing an office in New York in 2024. The leading infrastructure manager's other investments in North America include short line rail platform Phoenix Rail and Toronto-based decarbonised heating and cooling specialist Noventa.

Ancala was advised by Sidley Austin LLP (legal), Piper Sandler (financial) and DC Advisory (debt).

Financial details of the transaction are undisclosed.