Plastics, synthetic rubber and latex binders manufacturer Trinseo has entered into a binding agreement to purchase Arkema’s polymethyl methacrylates (PMMA) and activated methyl methacrylates (MMA) businesses, the company announced Monday. The transaction is valued at $1.36 billion.

“This acquisition will be a catalyst for portfolio transformation toward becoming a higher margin, less cyclical solutions provider,” Frank Bozich, president and chief executive officer of Trinseo, said in a release. “Arkema’s PMMA business has consistently delivered attractive margins with products serving many of Trinseo’s end markets. We believe this is an excellent first step in our portfolio transformation that is expected to ultimately include the separation of some of our commodity businesses.”

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.

Acquiring the PMMA and MMA businesses from Arkema is expected to generate $50 million in annual pretax cost synergies by 2023, as well as other revenue synergies with Trinseo’s existing position in the PMMA market.

The transaction is slated to close in mid-2021 following the completion of regulatory approvals and customary closing conditions.

Trinseo also said it is “exploring the potential divestiture” of its synthetic rubber business.