HOUSTON (ICIS)--Arkema’s sale of its polymethyl methacrylate (PMMA) business to US-based styrenics producer Trinseo was finalized on Monday, the companies announced.
The transaction, valued at €1.14bn, was announced in December and was expected to close by mid-2021.
The PMMA business is integrated from production of methyl methacrylate (MMA) to PMMA, marketed under brands Plexiglas in the Americas and Altuglas in the rest of the world.
There are seven production sites, with four in Europe and three in North America.
For Arkema, the divestiture is the next step as the company transforms itself into a sustainable and innovative specialty materials company, a goal it hopes to attain by 2024.
Arkema’s operations will now be mainly focused around adhesive solutions, advanced materials and coating solutions.
For Trinseo, the acquisition serves as a catalyst as the company transforms into a higher margin, less cyclical solutions provider.
Trinseo said it will accelerate investments in growth opportunities for the company’s Engineered Materials business globally and is also expected to generate about $50m of annual synergies.
Additionally, the PMMA business is a strategic fit in that it enhances Trinseo’s ability to provide solutions to customers in profitable markets.
Trinseo also makes compounds of polycarbonate (PC), acrylonitrile-butadiene-styrene (ABS) and polypropylene (PP).
With future investments, there will be the opportunity to leverage Trinseo’s global presence to provide solutions to its existing customers in Asia Pacific, where Trinseo has a significant presence, the company said.
“This journey will bring us closer to our customers, create a more sustainable, environmentally-friendly footprint, and shorten the cycles of innovation that accelerate the process of bringing new, industry-leading solutions to market,” Trinseo CEO Frank Bozich said.
Thumbnail image shows PMMA. Source: Shutterstock