Sector News

US Trinseo to sell synthetic rubber business to Synthos for $491m

May 23, 2021
Chemical Value Chain

Trinseo has agreed to sell its synthetic rubber business to the Polish company Synthos for $491m, the US-based styrenics producer said on Friday.

Out of the total, $449.4m is made up of cash and $41.6m represents pension liabilities, Trinseo said. It expects net cash proceeds will be $400m after factoring the costs and taxes associated with the sale.

The deal should close in 2022. It will include Trinseo’s plant in Schkopau, Germany, as well as the related research-and-development facilities.

The segment makes solution styrene butadiene rubber (SSBR) and emulsion styrene butadiene rubber (ESBR). It also makes nickel polybutadiene rubber (Ni-PBR) and neodynium PBR (Nd-PBR).

Synthos did not immediately respond to a request for comment after hours in Poland.

Trinseo’s CEO, Frank Bozich, said the sale will strengthen the company’s balance sheet.

Earlier this year, Trinseo closed on the €1.14bn acquisition of Arkema’s polymethyl methacrylate (PMMA) business.

Trinseo is funding the acquisition with up to $250m of existing cash. The rest will come from new debt financing.

The sale of the synthetic rubber business will also give Trinseo more flexibility to acquire more businesses and develop organic growth projects, Bozich said.

During a conference call, Trinseo said it wants to build a PMMA plant and a compounding line in Asia Pacific.

“In pursuing our transformation strategy toward becoming a higher margin and less cyclical specialty materials and sustainable solutions provider, we believe our best path is to focus on growth in engineered materials and CASE applications,” he said.

CASE refers to coatings, adhesives, sealants and elastomers.

By Al Greenwood

Source: icis.com

comments closed

Related News

September 19, 2021

SIG invests €12m in new pilot plant for Europe tech centre

Chemical Value Chain

Aseptic carton packaging manufacturer SIG has announced it is investing €12 million in a new pilot plant, which will be part of the company’s new Tech Center Europe. The pilot plant will offer modern extrusion and finishing technology, advanced quality measurement systems and testing equipment.

September 19, 2021

Partnership to commercially develop waste-to-methanol technology

Chemical Value Chain

Johnson Matthey has teamed up with waste-to-chemical technologies company MyRechemical to commercially develop waste-to-methanol technology, with the aim of contributing to sustainability.

September 19, 2021

Neste and Kinder Morgan to create U.S. storage and logistics hub for renewable-fuels feedstock 

Chemical Value Chain

Upon completion of the project, Kinder Morgan’s Harvey, Louisiana facility will serve as the primary hub where Neste will store a variety of raw materials including, for example, the used cooking oil it collects from more than 40,000 restaurants across the United States.

Send this to a friend