Arkema Closes Sale of PMMA Business to Trinseo
Arkema has completed the sale of its PMMA business to US plastics and rubber producer Trinseo, a deal announced in December 2020. The French chemical company said the divestment is “fully in line” with its ambition to become a pure specialty materials player by 2024, with the three complementary segments of Adhesive Solutions, Advanced Materials and Coating Solutions.
The transaction has an enterprise value of €1.14 billion, slightly more than nine times the activities’ estimated EBITDA for 2020. The former Arkema PMMA business, with 860 employees, operates at seven production sites worldwide, including four in Europe and three in North America. It claims leading commercial positions as a supplier to automotive OEMs as well as to applications in construction, signs & displays and the sanitary sector.
Arkema’s PMMA portfolio is back-integrated from methyl methacrylate (MMA) to the polymer, which is marketed as Plexiglas in the Americas and Altuglas elsewhere. The acquisition will strengthen Trinseo’s range of performance plastics, including ABS and PC, as well as its business with the automotive, construction and lighting markets. In addition to styrenics and polycarbonate, the erstwhile Dow spinoff specializes in latex binders and synthetic rubber.
Commenting on the deal, Trinseo said it serves as a catalyst to help it transform into a higher margin, less cyclical solutions provider. Moreover, the new assets will create synergies of around $50 million annually and help accelerate investment in growth opportunities for its engineered materials business. Finally, it will provide the opportunity to leverage the US company’s own global presence to supply its existing customers in Asia Pacific, where it has a significant presence.
Author: Dede Williams, Freelance Journalist
