European chemicals manufacturer Synthos S.A. has forged a deal to acquire plastic and materials firm Trinseo’s synthetic rubber business based in Schkopau, Germany for $491 million, the companies recently announced in separate releases.
Under the terms of the transaction, Synthos will take possession of the Schkopau-based operations and its manufacturing and research and development assets. The Poland-based firm said the acquisition provides it with access to new higher-margin markets and grows its geographic presence, including in Asia.
“We believe that the Synthetic Rubber Business brings a range of technologically advanced SSBRs, including functionalized SSBR grades used for high-performance tires (low resistance tires and tires for electric vehicles). This acquisition fits into our strategy of continuous product portfolio expansion, which will allow us to satisfy the complete needs of the customer, which is a critical factor for success in the global synthetic rubber market,” said the firm’s CEO, Zbignew Warmuz, in a statement. “By making the acquisition and combining our already strong and technical and research and development capabilities, with those of the Synthetic Rubber Business, we believe that we will [be] even better prepared to take advantage of global megatrends, including the green mobility revolution, circularity, and the control of CO2 emissions.”
440 Trinseo employees, most of whom are based in Germany, are anticipated to retain their positions following the transaction.
“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,” Trinseo CEO and president Frank Bozich said in a company release. “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 more organic and acquisition growth opportunities.”
Synthos and Trinseo expect the sale to close in 2022.
Arkema entered into a deal to sell it polymethyl methacrylates (PMMA) and activated methyl methacrylates (MMA) businesses to Trinseo in late 2020 for $13 billion. PMMA, a transparent and tough plastic, is used in a variety of applications, including consumer electronics, medical, building and construction, and automotive. Arkema’s PMMA business maintains a significant presence in the automotive and building and construction markets.