BERWYN, Pa.--(BUSINESS WIRE)--Trinseo (NYSE: TSE), a global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber, today announced it has signed a definitive agreement with The Dow Chemical Company to acquire latex production facilities and related infrastructure at Rheinmunster, Germany.
The transaction is expected to close in the second half of 2019, following European Union regulatory approval and customary closing conditions. Consideration for the transaction is approximately €40 million in the form of assumed pension liabilities for transferred employees.
“This acquisition is directly aligned with Trinseo’s strategy to grow its Latex Binders businesses, particularly in applications serving the Adhesives and Construction industry, as well as Specialty Paper,” said Frank Bozich, President and CEO of Trinseo. “Taking full control of these advantaged manufacturing assets will allow Trinseo to produce a wider variety of products, invest capital for technology upgrades, and optimize operations for the mix of products and chemistries most needed by our customers.”
The transaction includes full ownership and operational control of both latex production facilities at Rheinmunster, as well as site infrastructure and services contracts, and approximately 114 employees who are expected to transfer from Dow to Trinseo.
“This acquisition demonstrates our commitment to our customers, as it will allow us to extend the range of products we can produce,” said Hayati Yarkadas, Senior Vice President and Business President, Performance Materials. “Customers will have access to a broader offering in Trinseo’s portfolio of Latex Binders products. The Rheinmunster site is well situated for future expansion, as it is already the home to our Global Research and Development center for Latex Binders, and is geographically central to serve many of our European customers.”
The acquisition adds to Trinseo’s grid of production facilities across Europe – including an existing Trinseo latex production plant in Rheinmunster, Germany, as well as operations in Hamina, Finland; Norrkoping, Sweden; and Terneuzen, The Netherlands. Together this grid of Latex Binders production facilities allows Trinseo to supply customers all across Europe, the Middle East and northern Africa.
Trinseo (NYSE:TSE) is a global materials solutions provider and manufacturer of plastics, latex binders, and synthetic rubber. We are focused on delivering innovative and sustainable solutions to help our customers create products that touch lives every day — products that are intrinsic to how we live our lives — across a wide range of end-markets, including automotive, consumer electronics, appliances, medical devices, lighting, electrical, carpet, paper and board, building and construction, and tires. Trinseo had approximately $4.6 billion in net sales in 2018, with 16 manufacturing sites around the world, and approximately 2,500 employees. For more information visit www.trinseo.com.
Note on Forward-Looking Statements:
This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements in this press release may include, without limitation, forecasts of growth, revenues, business activity, acquisitions, financings and other matters that involve known and unknown risks, uncertainties and other factors that may cause results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. As a result of the foregoing considerations, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.