Berwyn, Pennsylvania – Trinseo is to sell its synthetic rubber business to Polish materials supplier Synthos SA for an enterprise value of $491 million (€401 million).
Due to close “in 2022,” the deal includes the transfer of Trinseo’s Schkopau, Germany-based manufacturing and R&D facilities, as well as related intellectual property.
Trinseo’s SR business employs around 440 people, who are expected to join Synthos once the transaction closes, added the US group’s 21 May announcement.
Trinseo is shifting its focus onto higher-margin and less cyclical speciality materials, explained Frank Bozich, Trinseo president and CEO.
Synthos, he stressed, is “well-positioned” to leverage the growth opportunities associated with synthetic rubber and the Polish company’s strategic commitment to the industry “makes it an ideal owner.”
In a separate statement on 21 May, Synthos said the acquisition will enable it to use “the entire range of technologically advanced SSBR rubbers.”
These, it said, include functionalised styrene-butadiene rubbers, mainly used in high-tech low rolling resistance tires.
“The transaction fits perfectly into our strategy, which assumes continuous development of the product offer,” stated Synthos.
Synthos estimates that the Schkopau plant will bring in annual earnings (EBITDA) of at least €50-60 million. In addition, it expects synergies of over €20 million from the transaction.
Synergies are to be achieved through “more effective use of production capacity”, the introduction of new types of SSBR and Li-PBR rubbers, and cost savings.
The acquisition “will contribute to the sustainable development of the European economy and will positively affect the preservation of jobs... in Europe,” said Zbigniew Warmuz, president of the management board of the Synthos Group.
Trinseo’s SR business manufactures solution SSBR and emulsion styrene-butadiene rubber (ESBR) at its manufacturing hub in Schkopau. Official production capacity for SSBR is 200kt and 130kt for ESBR.
The unit reported earnings (adjusted EBITDA) of $41 million on sales of $441 million in 2019.
Based in Oświęcim, Poland, Synthos manufactures SSBR, ESBR, nitrile butadiene rubber, high-styrene rubber and butadiene rubber.
In addition to rubber, the Polish company also produces polystyrene, adhesives, vinyl acetate-based dispersions, acrylic copolymers and styrene-acrylic polymers.