Trinse, an overall materials company and manufacturer of plastics, latex binders and synthetic elastic, announced today it has gone into a definitive agreement to sell its synthetic elastic business arranged in Schkopau, Germany (“Synthetic Rubber” or the “Business”) to Synthos S.A. and its affiliates (collectively “Synthos”) for an undertaking value of around $491 million, comprised of $449.4 million of cash and the suspicion of generally $41.6 million of pension liabilities. The expected net cash proceeds are generally $400 million after transaction-related costs and taxes.
Trinseo Makes A Huge Decision
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in 2022. The Business includes around 440 employees, for the most part located in Schkopau, Germany, who are expected to join Synthos once the transaction closes. The transaction also includes the transfer of the associated Schkopau-based manufacturing and research and development facilities, similarly as related intellectual property.
“In seeking after our change procedure toward becoming a higher edge and less cyclical specialty materials and sustainable solutions provider, we accept our most ideal route is to focus on development in Engineered Materials and CASE applications,” said Frank Bozich, Trinseo President and Chief Executive Officer. “Following the acquisition of Arkema’s PMMA business, the divestiture of Synthetic Rubber gives Trinseo a more grounded balance sheet and more important flexibility to seek after organic and acquisition development openings.”
Bozich continued, “Synthos is throughout arranged to utilize the different development openings associated with Synthetic Rubber and its strategic commitment to the synthetic elastic industry makes it an ideal owner.” Deutsche Bank filled in as exclusive financial advisor and Clifford Chance filled in as real advisor to Trinseo on the transaction.