Dallas, Texas – Celanese Corp. has singed a definitive agreement to acquire the Santoprene thermoplastic vulcanisates (TPV) business of ExxonMobil Corp. for $1.15 billion (€970 million).
The deal covers the comprehensive TPV product portfolio, including Santoprene, Dytron, and Geolast trademarks, along with intellectual property as well as production and commercial assets, said Celanese in a 30 June statement.
The 350-employee business operates two production facilities – in Pensacola, Florida, and Newport, Wales, UK – with over 190 kilotonnes per annum of total annual production capacity.
The acquisition will expand Celanese’s portfolio of engineered solutions, according to Lori Ryerkerk, chairman and chief executive officer.
The transaction, which was funded through the sale of Celanese shares in Polyplastics, will represents “a high-return opportunity to drive future shareholder value,” he added.
Santoprene will “substantially strengthen” Celanese’s existing elastomers portfolio, according to Tom Kelly, SVP engineered materials.
It will particularly bring a wider range of functionalised solutions into targeted growth areas such as future mobility, medical, and sustainability, he added.
The transaction is subject to regulatory approvals and is expected to close in the fourth quarter of 2021.
In a separate statement, ExxonMobil said it will continue to serve elastomers customers with speciality products, including butyl rubber and Vistalon EPDM rubber.