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(Source: ExxonMobil)

01. July 2021

Celanese: Acquisition of ExxonMobil’s Santoprene TPV elastomers business

On 30 June 2021, Celanese Corporation announced the signing of a definitive agreement to acquire the Santoprene TPV elastomers business of Exxon Mobil Corporation. The business is a leading global producer of TPV serving a variety of end-uses including automotive, construction, appliance, medical, and industrial. Celanese will buy the Santoprene brand as part of a comprehensive TPV product portfolio, along with intellectual property, production and commercial assets, and a world-class organisation.

According to the terms of the agreement, Celanese will purchase the Santoprene business from ExxonMobil for a total purchase price of USD 1.15 billion on a cash-free, debt-free basis. As part of the transaction, Celanese will acquire the following:

Celanese will buy ExxonMobil’s Santoprene TPV elastomers business for a price of USD 1.15 billion (Source: ExxonMobil)

Celanese will buy ExxonMobil’s Santoprene TPV elastomers business for a price of USD 1.15 billion (Source: ExxonMobil)

  • Santoprene, Dytron, and Geolast trademarks and product portfolios
  • All customer and supplier contracts and agreements
  • Two world-scale production facilities in Pensacola, FL, USA, and Newport, Wales, UK, with over 190,000 t of total annual production capacity
  • Comprehensive TPV intellectual property portfolio with associated technical and R&D assets
  • Approximately 350 highly-skilled employees including world-class manufacturing, technical, and commercial organisations

The transaction is subject to regulatory approvals, carve-out preparations, and other customary closing conditions, which will determine the timing of close. The transaction is expected to close in Q4 2021.

“With the acquisition of the Santoprene business, we are further expanding the unrivaled portfolio of engineered solutions we bring to our customers,” said Lori Ryerkerk, chairman and chief executive officer. “This transaction represents a high-return opportunity to drive future shareholder value by deploying our excess cash from the monetisation of our passive ownership in Polyplastics and continued strong cash generation in our businesses. We are eager to welcome the Santoprene team to Celanese and look forward to their contributions to our continued growth in Engineered Materials.”

“This transaction substantially strengthens our existing elastomers portfolio, allowing us to bring a wider range of functionalised solutions into targeted growth areas including future mobility, medical, and sustainability,” said Tom Kelly, senior vice president Engineered Materials. “The reputation of the Santoprene brand in TPV is consistent with Engineered Materials’ flagship brands including Hostaform in POM and GUR in UHMW-PE. With this product as part of the Engineered Materials portfolio and project pipeline model, we are confident that our joint commercial and technical teams across the globe will generate meaningful shareholder value.”

www.celanese.com

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