MOSCOW (MRC) -- Trinseo is on track to acquire Arkema’s polymethyl methacrylate (PMMA) business, the producer said.
In December, Trinseo announced that it agreed to buy the business for EUR1.14bn. Arkema’s PMMA business has consistently delivered good margins and cash flow, and it also serves many of Trinseo’s end markets. CEO Frank Bozich said that the acquisition of Arkema’s acrylics business is part of Trinseo’s strategy to grow the business in areas with higher margins and less cyclicality.
"We are still on track to close this transaction by mid-year, at which time we also hope to have concluded our efforts around the exploration of a potential sale of the synthetic rubber business,” said Bozich. The move to sell its synthetic rubber business was part of Trinseo’s plan to reduce its leverage and preserve its financial flexibility.
The business makes solution styrene butadiene rubber (SSBR) as well as emulsion styrene butadiene rubber (ESBR). It also makes nickel polybutadiene rubber (Ni-PBR) and neodynium PBR (Nd-PBR). The synthetic-rubber business had net sales of USD319.7m in 2020.
The business reported USD1.7m in adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA), versus USD299.5m for the company as a whole in 2020.
As per MRC, Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, and its affiliate companies in Europe have announced a price increase for all polycarbonate (PC) grades in Europe.
According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) totalled 89,300 tonnes in 2020, up by 14% year on year (78,500 tonnes a year earlier).
Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.8 billion in net sales in 2019, with 17 manufacturing sites around the world, and approximately 2,700 employees.