Chemicals manufacturer ExxonMobil Chemical Co. entered into a definitive agreement to sell its Santoprene TPV elastomers business to specialty chemicals and materials firm Celanese for $1.15 billion, the companies announced in separate releases Wednesday.
Two manufacturing sites in Pensacola, FL and Newport, Wales are part of the transaction, as well as related product, process development and lab equipment, operating and administration buildings, control systems and documentation, and intellectual property. The production facilities have a combined capacity of more than 190 kta.
“This transaction substantially strengthens our existing elastomers portfolio, allowing us to bring a wider range of functionalized solutions into targeted growth areas including future mobility, medical, and sustainability,” Tom Kelly, senior vice president, Engineered Materials for Celanese, said in a statement. “The reputation of the Santoprene brand in TPV is consistent with Engineered Materials’ flagship brands, including Hostaform in POM and GUR in UHMW-PE.”
Santoprene products are used by a number of industries, including automotive, construction, industrial, and medical.
ExxonMobil Corp., the parent company of ExxonMobil Chemical, said the deal will enable the firm to pursue other business objectives.
“Reaching this agreement with Celanese is consistent with our strategy and allows us to focus on serving the growing market for primary olefin derivatives, where we can leverage our competitive advantages of industry leading scale, integration, and proprietary technology,” said Jack Williams, senior vice president at ExxonMobil Corp.
The companies expect the sale to close in the fourth quarter of this year.