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Trinseo to sell synthetic rubber business to Synthos

May 26/2021

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, has announced today it has entered into a definitive agreement to sell its synthetic rubber business based in Schkopau, Germany  to Synthos S.A. and its affiliates for an enterprise value of approximately USD491 million, comprised of USD449.4 million of cash and the assumption of approximately USD41.6 million of pension liabilities, as per the company's press release.

The expected net cash proceeds are approximately USD400 million after transaction-related costs and taxes.

The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in 2022.

The Business includes approximately 440 employees, mostly located in Schkopau, Germany, who are expected to join Synthos once the transaction closes. The transaction also includes the transfer of the associated Schkopau-based manufacturing and research and development facilities, as well as related intellectual property.

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, said Frank Bozich, Trinseo President and Chief Executive Officer. Following the acquisition of Arkemas PMMA business, the divestiture of Synthetic Rubber provides Trinseo with a stronger balance sheet and greater flexibility to pursue organic and acquisition growth opportunities.

As MRC wrote before, recycled polystyrnee (PS) is just one of Trinseos sustainable materials aimed at circularity. The company also is involved with depolymerization with technology provided by partner, Recycling Technologies, and plans to build a dedicated plant at its Tessenderlo, Belgium location. This will be one of two PS recycling plants in Europe estimated to add a total of 30,000 tons of PS feedstock into the European marketplace. The plant is expected to start operating in 2023.

According to ICIS-MRC Price report, in Russia, Nizhnekamskneftekhim's PS prices remained unchanged in May. Prices of Nizhnekamskneftekhim's GPPS were in the range of Rb192,000-203,000/tonne, CPT Moscow, including VAT, whereas high impact polystyrene (HIPS) prices were at Rb196,000-207,000/tonne CPT Moscow, including VAT. At the same time, May prices of Penoplex's material fell by Rb15,000/tonne to Rb204,000-206,000/tonne CPT Moscow, including VAT.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.
Author:Margaret Volkova
Tags:Europe, PS, GPPS, HIPS, recikling, metilmetakrilat (MMA), metilamin, hlormetan, synthetic rubbers, Arkema, Trinseo (Styron), Nizhnekamskneftekhim, sustainable development, Germany, Russia.
Category:General News
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