Trinseo, a specialty material solutions provider, announced it has decided to pause the sale of its styrenics business.
Impact of Ukraine War
In November 2021 the Company announced that it had begun work to explore the divestiture of the Business and subsequently launched a formal sales process in the first quarter of 2022.
The scope of the potential divestiture was expected to include the Feedstocks and Polystyrene reporting segments as well as the Company’s 50% ownership of Americas Styrenics LLC.
The process generated broad and significant interest from both strategic and financial parties. However, the deterioration of financing markets and the economic uncertainty created by the war in Ukraine, particularly in European energy markets, has impeded the Company’s ability to obtain full value for the Business.
Frank Bozich, president and chief executive officer of Trinseo, said “
While the separation of the styrenics business is part of our transformation strategy, the current economic and financing environments make it challenging to get a value for the assets that is reflective of their significant cash generation, and therefore, we have decided to pause the sale process.”
The delay of the styrenics divestiture does not change the Company’s transformation strategy of becoming a higher growth, higher margin and less volatile specialty material and sustainable solutions provider. The Company intends to reevaluate a potential sale of the Business when macroeconomic conditions improve.
Bozich continued, “
In the meantime, we will utilize the cash generation of the styrenics and other businesses to invest in organic growth projects, increase our sustainable product offerings, decrease our CO2 footprint and return cash to shareholders.”
Trinseo's Polystyrene Product Range
Source: Trinseo