Trinseo, an American chemical materials company, said on December 14 that it would acquire Arkema's polymethyl methacrylate (PMMA) business, marking the first step in the company's transformation.
On the same day, Trinseo and Arkema signed a binding agreement to acquire the latter’s polymethyl methacrylate (PMMA) and methyl methacrylate (MMA) businesses (hereinafter collectively referred to as "PMMA business")
The purchase price is 1.137 billion euros (approximately 1.36 billion U.S. dollars), and it is expected that by 2023, the transaction will generate approximately 50 million U.S. dollars of pre-tax cost synergies. The transaction still needs regulatory approval and is expected to be completed in mid-2021.
Frank Bozich, President and CEO of Trinseo, said: "This acquisition will become a catalyst for portfolio transformation, making the company a higher-profit and shorter-cycle solution provider." "We believe that this is in portfolio transformation. China has taken an excellent first step and is expected to divest some commodity businesses in the future."
Trinseo is looking for potential customers to divest its synthetic rubber business. Bozich said: "Our synthetic rubber business is a very valuable asset. There are huge growth opportunities in the tire market. We believe that the industry will continue to develop and there are other parties that can better take advantage of these growth opportunities."
French specialty chemicals producer Arkema said on the same day that the business has about 860 employees and operates seven production bases, four in Europe and three in North America. Sales in 2020 are estimated to be approximately 510 million euros and EBITDA is approximately 122 million euros.
Trinseo is a global material solutions provider that produces plastics, adhesives and synthetic rubber. In 2019, Trinseo's net sales were approximately US$3.8 billion and more than 2,700 employees worldwide.