Trinseo: Sale of synthetic rubber business to Synthos completed

On 1 December 2021, Trinseo announced the closing of the previously announced transaction to sell its synthetic rubber business based in Schkopau, Germany, to Synthos S. A. and its affiliates for an enterprise value of approximately USD 491 million, comprised of a cash purchase price of USD 402.4 million, the assumption of approximately USD 41.6 million of pension liabilities by Synthos, and net working capital (excluding inventory) retained by Trinseo of USD 47.0 million.

In October 2021, Trinseo and Synthos entered into an amendment to the original purchase agreement to reduce the cash purchase price from USD 449.4 million to USD 402.4 million in exchange for an equivalent amount (USD 47.0 million) of net working capital to be collected by Trinseo. Following Trinseo’s collection of the net working capital, the expected net cash proceeds are approximately USD 400 million after transaction-related costs and taxes.

The business includes approximately 440 employees, mostly located in Schkopau, Germany. The transaction also includes the transfer of the associated Schkopau-based manufacturing and research and development facilities, as well as related intellectual property.

Trinseo said its sale of the synthetic rubber business to Synthos is another step forward in a series of strategic actions, including the recent acquisitions of Arkema's PMMA business in May 2021 and Aristech Surfaces LLC in September 2021, as well as the planned divestiture of its styrenics businesses, for which a formal sales process is expected to launch in the first quarter of 2022. These steps are part of the company’s transformation into a higher growth, higher margin and less cyclical speciality and sustainable materials provider, said the company.

Trinseo is a global materials solutions provider and manufacturer of plastics and latex binders. The company had approximately USD 3.0 billion in net sales in 2020 and has 26 manufacturing sites around the world, and approximately 3,800 employees.

www.synthosgroup.com
www.trinseo.com