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Latest Plastics & rubber News

Hexion Inc. Announces Sales of Phenolic Specialty Resins, Hexamine and European-based Forest Products Resins Businesses to Black Diamond and Investindustrial

Hexion Inc. completed the sale of its Phenolic Specialty Resin, Hexamine and European-based Forest Products Resins businesses for approximately $425 million to Black Diamond and Investindustrial. The transaction was announced in September 2020. The consideration involves $335 million in cash and certain assumed liabilities with the remainder in future proceeds based on the performance of the business.

The sold businesses generated sales of approximately $530 million for the last twelve months ended June 30, 2020 and include 11 manufacturing facilities with approximately 900 associates where phenolic specialty resins and engineered thermoset molding compounds are produced for a large number of end markets including building and construction, industrial, automotive, electronics, agriculture and consumer.

About Hexion
Hexion Inc. develops, manufactures and markets a wide variety of products including resins, dispersions, additives, powder coatings and speciality monomers with a broad range of end-uses including coatings, composites, and adhesives for building and construction, industrial and many other applications. Hexion employs approximately 4300 people (2017) at about 65 locations across Europe, the USA and Asia. In 2020, the company generated sales of $2.5 billion, a decrease of 10 percent compared with $2.8 billion in the prior year period.

Source: Hexion News Release, Sept. 28, 2020 & April 30, 2021

Trinseo Acquires Arkema’s Polymethylmethacrylate (PMMA) Business

On May 03, 2021, Arkema announced that it has completed the sale of its polymethyl methacrylate (PMMA) business to US-based styrenics producer Trinseo. The transaction is valued at €1.14bn and includes brands such as Plexiglas in the Americas and Altuglas in the rest of the world. The divested business consists of seven production sites, with four in Europe and three in North America where approximately 860 people are employed. Sales generated at these sites was around €510 million in 2020 with an estimated EBITDA of around €122 million. For Trinseo, the PMMA business will enhance Trinseo’s ability to provide solutions to customers in profitable markets.

About Arkema
Headquartered in Colombes, near Paris, France, Arkema SA is a global manufacturer and supplier of chemicals, polymers and coating products which are sold through three business segments: Coating Solutions, Industrial Chemicals, and Performance Products. Major chemical products include organic peroxides, thiochemicals, and fluorochemicals. The Coating business segment provides solutions for decorative paints, industrial coatings, adhesives and several other acrylic applications. In 2020, the company operated in 55 countries with 20,600 employees worldwide, 3 R&D hubs and 147 industrial sites and had revenue of approximately €7.9 billion.

About Trinseo
Trinseo (NYSE:TSE) is a global supplier and manufacturer of materials solutions including plastics (PC, PP, PS..), latex binders, and synthetic rubbers (SBR, SBS, ABS..) which are used in a wide range of end-markets including automotive, consumer electronics, appliances, medical devices, packaging, footwear, carpet, paper and board, building and construction, and tires. In 2020, the company generated net sales of approximately $3.0 billion, with 17 manufacturing sites around the world, and approximately 2,600 employees..

Source: Arkema Press Releases 12/14/2020 & 05/03/2021; Trinseo News May 03, 2021

Covestro Completes the Acquisition of DSM’s Coating Resins Business

On 12 April 2021, Covestro announced that it has completed its acquisition of DSM's Resins & Functional Materials business (RFM) and related businesses for a equity value of EUR 1.6 billion. The book profits in transactions are expected b be around EUR 540 million. DSM will receive a net cash of approximately EUR 1.4 billion.

The integration of RFM will increase revenues of the Coatings, Adhesives, Specialties (CAS) segment of Covestro by about EUR 1 billion, making Covestro a leading supplier in the field of sustainable coating resins, with one of the most comprehensive and innovative product portfolios. The company expects synergy effects to build-up to about EUR 120 million per annum from full integration by 2025.

About Covestro
Covestro is a multinational chemical company headquartered in Leverkusen, Germany. It is a major producer of isocyanates, polyols and polyurethane based additives for cellular foams, thermoplastic polyurethanes and coatings & adhesives. The company is also a major producer of polycarbonate and blended resins (PC/ABS, PC/PET, PC/PBT). In 2019, Covestro employed approximately 17,200 people at 30 locations across the world that generated revenue of EUR 12.4 billion and EBITDA of EUR 1.6 billion.

About DSM
Koninklijke DSM N.V. (Royal DSM, commonly known as DSM), is a multinational chemical company headquartered in Heerlen, Netherlands. The company is a major producer of resins & functional materials that are used in paints, inks, stereolithography and coatings. The company is also an important producer of engineering specialty plastics which are used in components for the electrical and electronics, automotive, flexible food packaging and consumer goods industries. Another important business segment is Nutritional Products and DSM Food Specialties such as vitamins carotenoids, nutritional lipids for feed, food, pharmaceutical and personal care products. In 2020, DSM employed approximately 23,000 people at 200 locations in nearly 50 countries that generated net sales of EUR 8.1 billion and EBITDA of EUR 1.37 billion.

Source: Covestro Press Release, 1 April 2021 & Fibre2Fashion News,12 April, 2021

Axalta Completes the Acquisition of U-POL

On 15 September 2021, Axalta Coating Systems (NYSE: AXTA) announced that it successfully completed its acquisition of U-Pol from Graphite Capital Management LLP and other holders for £428 million (approximately $590 million) subject to certain adjustments set forth in the Sale and Purchase Agreements for the transaction.

The acquisition of U-Pol is expected to create operating synergies and efficiencies of approximately $10 million within 18 to 24 months. Furthermore, the company identified commercial synergy opportunities that could create significant value over time.

About U-POL
U-Pol was founded in 1948 and is based in the United Kingdom. The company produces a wide range of refinishing products for the automotive aftermarket. It also sells related products including aerosols, protective coatings, and adhesives.
U-POL expects net sales of approximately $145 million and adjusted EBITDA of approximately $38 million for fiscal year 2021.

About Axalta
Axalta Coating Systems (formerly DuPont) is one of the largest coatings companies in the world. It is active in over 130 countries and serves more than 100,000 customers. The company develops, manufactures and sells a wide range of performance and transportation coatings around the world. It has approximately 13,000 employees and 48 manufacturing centers around the world that generated net sales of approximately $3.7 billion in 2020.

Source: Axalta News Release, July 7, 2021 & Sept. 15, 2021

Clariant Sells its Pigments Business to to Heubach Group and SK Capital Partners

Clariant announced on June 14, 2021 that it has reached definitive agreements for the divestment of its Pigments business to a consortium of Heubach Group (“Heubach”) and SK Capital Partners (“SK Capital”). The divestment is valued CHF 805 million to CHF 855 million on a cash and debt free basis, depending on an earn-out payment of CHF 50 million contingent on the 2021 financial performance of Clariant’s Pigments business. At the time of closing of the transaction, Clariant will reinvest to become a 20% shareholder alongside Heubach and SK Capital in the ultimate holding company. The combined global pigment business will have approximately 3000 employees and is projected to generate more than EUR 900 million in annual sales. The reinvestment is likely to improve profitability of the Pigments business resulting from greater efficiency, new growth opportunities as well as synergies of the combination with the Heubach Pigments business.

About Clariant
Clariant AG is a Swiss multinational speciality chemicals company, headquartered in Muttenz, Switzerland. Clariant was formed in 1995 as a spin-off from Sandoz. Its main business units are care chemicals (consumer and industrial); catalysis and natural resources (mining products). In 2020, sales from continuing operations were CHF 3.9 billion (US 4.3 billion).

Source: Clariant News Release, June 14, 2021

AkzoNobel completes acquisition of Titan Paints

Akzo Nobel N.V. (AKZA; AKZOY) acquired 100% of the shares of Industrias Titan S.A.U. (Titan Paints). The transaction is expected to strengthen Akzo Nobel’s paints business and footprint in Spain and Portugal to become one of the paint market leaders in the region. The deal, first announced in October 2020, includes three production facilities and seven logistics and service centers for decorative paints generating revenue of around EUR80 million.

About AkzoNobel
Akzo Nobel is one of the largest coatings companies in the world and a major producer of specialty chemicals. It is active in all sectors of the coatings industry, both protective and decorative coatings. In 2018, the company employed around 34,500 people in over 150 countries and generated $10.3 billion in revenue.

Source: AkzoNobel Media Release, June 10, 2021

PPG completes Tikkurila Acquisition

PPG announced that it has completed its acquisition of all of the shares of Tikkurila (NASDAQ OMX: TIK1V). Tikkurila shareholders received EUR34.00 in cash for each share of Tikkurila tendered. Together with the shares it previously acquired, PPG now controls 97.1 percent of Tikkurila’s issued and outstanding shares. The combination of Tikkurila with PPG will give PPG’s customers access to a broader portfolio of new technologies and resources.

About PPG
PPG is one of the largest coatings companies in the world and the largest producer worldwide of transportation OEM and refinish coatings. It is also a major player in architectural coatings in the United States. The company has over 45,000 employees worldwide and reported net sales of $15.1 billion in 2019. It operates over 150 plants globally, including 45 plants across 15 countries in Europe.

Source: PPG Press Release, March 16, 2020