On May 3rd, 2021, Trinseo, leading materials company and manufacturer of plastics, latex binders and synthetic rubber, announced closing of the mega business deal to acquire Arkema’s PMMA (Polymethyl methacrylate) business.
With the closing of transaction, USA headquartered Trinseo will be acquiring the PMMA business of Arkema at a purchase price of USD 1.36 billion (i.e., Euro 1.14 billion, exclusive of taxes) as per the announcement made by the companies in December 2020.
The deal comes as a strategic step for both the companies where Trinseo will be heading to transform into a higher margin, less cyclical solutions provider, taking a key step towards its portfolio transformation. This divestment comes as a next leap for Arkema to achieve its ambitious goal of transforming itself into a sustainable and innovative specialty materials company by 2024.
PMMA is a transparent, rigid plastic, serving wide ranging applications in the automotive, construction, medical and electronics sectors. Arkema's PMMA business has high performance products and popular brands (such as Plexiglas in the America's, Altuglas, Solarkote and Oroglas).
Arkema’s divested PMMA business, employs nearly 860 people handling operations in France, Denmark, Italy, the United States and Mexico and operates seven PMMA and MMA manufacturing sites (4 in Europe and 3 in North America) and three R&D facilities in Europe, who will now be joining Trinseo.
Trinseo is expected to generate around USD 50 million annual synergies with the acquisition of Arkema’s business. The deal is a strategic fit which also allows Trinseo with its existing portfolios to provide solutions to its customers in profitable markets. Trinseo is also expecting to further strengthen its presence in the global market particularly in the Asia Pacific.
In the company’s latest press release, Frank Bozich, CEO and President of Trinseo said “Today is a special day. I am thrilled to welcome our new colleagues and customers to the Trinseo family, as we embark on this transformation journey together. 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 is a US based, global materials solutions provider and a manufacturer of plastics, latex binders and synthetic rubber. Trinseo clocked net sales of USD 3 billion in 2020. It has 2600 employees, 17 manufacturing sites and 9 research and development facilities spread across 7 business segments.
Arkema is a specialty chemicals and advanced materials company headquartered near Paris, France. It was created in 2004, when French oil major Total restructured its chemicals business. With a turnover of around USD 9.61 billion, Arkema has 20,500 employees and has global presence in more than 55 countries. The company holds 13 research centres worldwide, and a total of 144 production plants in Europe, North America and Asia and the rest of the world.