Trinseo enters 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 $491 million, comprised of $449.4 million of cash and the assumption of approximately $41.6 million of pension liabilities. The expected net cash proceeds are approximately $400 million after transaction-related costs and taxes.
Details of the Transactions
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in 2022. The synthetic rubber 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.
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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 Arkema’s PMMA business, the divestiture of Synthetic Rubber provides Trinseo with a stronger balance sheet and greater flexibility to pursue organic and acquisition growth opportunities.”
Bozich continued, “
Synthos is well-positioned to leverage the numerous growth opportunities associated with synthetic rubber and its strategic commitment to the synthetic rubber industry makes it an ideal owner.”
Deutsche Bank served as exclusive financial advisor and Clifford Chance served as legal advisor to Trinseo on the transaction.
Source: Trinseo