Synthos S.A. acquires Trinseo’s rubber business in a strategic deal signed May 21, 2021
Synthos S.A., a European chemicals producer and a key player in the global synthetic rubber market, announced today its signing of an agreement with Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, to acquire Trinseo’s synthetic rubber operations based in Schkopau, Germany.
Taking over Trinseo’s Schkopau-based operations, including its manufacturing and research and development facilities (the “Synthetic Rubber Business”), allows Synthos to access new higher-margin markets, expand its geographic footprint, including in Asia, and leverage on significant synergies between the two businesses.
“We believe that the Synthetic Rubber Business brings a range of technologically advanced SSBRs, including functionalized SSBR grades used for high-performance tires (low resistance tires and tires for electric vehicles). This acquisition fits into our strategy of continuous product portfolio expansion, which will allow us to satisfy the complete needs of the customer, which is a critical factor for success in the global synthetic rubber market. By making the acquisition and combining our already strong technical and research and development capabilities with those of the Synthetic Rubber Business, we believe that we will even better prepared to take advantage of global megatrends, including the green mobility revolution, circularity and the control of CO2 emissions,”
Our management estimates that, upon consummation of the acquisition, the Synthetic Rubber Business will approximately contribute at least €50-60 million of EBITDA on an annual basis. Further, we expect annualized acquisition-related synergies of above €20 million, mainly resulting from (i) volume increases resulting from utilizing unused SSBR and ESBR capacity in the Synthetic Rubber Business by addressing other markets and other customer bases and (ii) the introduction of new SSBR and Li-PBR grades with higher margins than we currently produce in our existing production plants, as well as (iii) cost savings resulting from combining our two businesses,” - pointed out Zbignew Warmuz, Synthos Chief Executive Officer. “We strongly believe thatthis transaction will support the sustainable development of the European industry and preservation of European jobs.”
“Synthos is well-positioned to leverage the numerous growth opportunities associated with Synthetic Rubber and its strategic commitment to the synthetic rubber industry makes it an ideal owner. “ – said Frank Bozich, Trinseo President and Chief Executive Officer.
Following Friday’s signing, Synthos and Trinseo will cooperate closely to ensure the smooth integration of both organisations.
The transaction, which is subject to customary closing conditions and regulatory approvals, including anti-trust clearance, is expected to close towards the end of 2021.
This communication is not an offer of securities for sale in the United States or any other jurisdiction. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer thereof, which will contain detailed information about the company and management, as well as financial statements.