Lion has tentative deal to sell SBR plant to former CEO’s firm

15 January 2014 20:52  [Source: ICIS news]

HOUSTON (ICIS)--US-based Lion Copolymer has a tentative agreement to sell its styrene butadiene rubber (SBR) plant in Baton Rouge, Louisiana, to a company recently formed by former CEO Greg Nelson, Lion confirmed on Wednesday.

The likely purchaser is East West Copolymer & Rubber, a Lion spokesperson confirmed.

Nelson was appointed as Lion CEO in 2008 but left the company in the summer of 2013, according to a market source.

“Employees and the union have been notified about the tentative deal to close the sale of the SBR plant by the end of the month,” said one source in the financial community.

Lion retained Morgan Stanley to sell the entire company in 2013, but bids came in too low, said other sources in the financial community.

Additionally, Lion announced in December that it would temporarily close the SBR plant because of economic conditions.

The SBR plant has a capacity of 130,000 tonnes/year, according to a source at the company.

Lion also produces ethylene propylene diene monomer (EPDM) at its plant in Geismar, Louisiana, but that would not be part of the sale, sources said.


By: Tracy Dang & Joseph Chang



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index