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2020 Plastics & Rubber News

Ascend Performance Materials Purchases Poliblend and Esseti Plast GD from D’Ottavio Group

Ascend Performance Materials, the largest fully integrated producer of polyamide 66 resin, signed an agreement to purchase Poliblend and Esseti Plast GD from D’Ottavio Group. The acquisition includes a manufacturing facility in Mozzate, Italy, the masterbatch portfolio of Esseti Plast GD and the engineering plastics portfolio of Poliblend, which consists of virgin and recycled grades of PA66, PA6, PBT and POM. This strategic acquisition will increase Ascend’s footprint in Europe and will provide Ascends customers with a broader portfolio of high-performance, sustainable materials to meet increasing demands.

About Ascend
Headquartered in Houston, Texas, Ascend Performance Materials is the world's largest integrated producer of Nylon 66 resin, and a global supplier of high-quality plastics, fibers and chemicals. The company has nine global locations, including five fully integrated manufacturing facilities in the southeastern United States and an engineering plastics compounding facility in Europe and employs over 2,500 people around the world.

Source: Ascend Press Release, February 12, 2020

BASF Completes Acquisition of Solvay’s Polyamide Business

On January 31, 2020, BASF acquired Solvay’s polyamide (PA 6.6) business for a purchase price on a cash and debt-free basis of EUR 1.3 billion. The transaction broadens BASF’s polyamide portfolio with innovative and well-known products such as Technyl®. It also allows BASF to support its customers with superior engineering plastics solutions for autonomous driving and e-mobility. The acquisition also gives BASF greater access to growing markets in Asia and in North and South America. The new business will be integrated into the Performance Materials and Monomers divisions of BASF.
The transaction between Solvay and BASF includes eight production sites in Germany, France, China, India, South Korea, Brazil and Mexico as well as research and development centers and technical consultation centers in Asia, North and South America.

About BASF
BASF is a German multinational chemical company founded in 1865 and headquartered in Ludwigshafen, Germany. The company is one of the largest plastics and resin supplier and has one of the most comprehensive plastics portfolios. It also provides a large number of chemicals, dyes, pharmaceutical ingredients and agricultural products. In 2019, BASF employed more than 117,000 people in over 200 countries and generated sales of about US$65 billion.

Source: BASF News Release, January 31, 2020

Huntsman anounces acquisition of CVC Thermoset Specialties Business

On March 16, 2020, Huntsman Corporation (NYSE: HUN), announced that it has agreed to acquire CVC Thermoset Specialties, a North American manufacturer of resins and chemicals for the industrial composites, adhesives and coatings markets. CVC Thermoset Specialties is owned by Emerald Performance Materials who produces and markets specialty chemicals for a broad range of food and industrial applications. CVC operates two manufacturing facilities located in Akron, Ohio, and Maple Shade, New Jersey and has annual revenues of approximately US$115 million. Under the terms of agreement, Huntsman will pay US$300 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity.

About Huntsman Corporation
Huntsman Corporation is an North American multinational manufacturer and marketer of chemical products for consumers and industrial customers with revenues of approximately $7 billion in 2019. Its resin portfolio includes epoxy resins, toughening agents, curatives, accelerators, and reactive diluents. The company operates more than 70 manufacturing, R&D and operations facilities in 30 countries and employs approximately 9,000 people within their four distinct business divisions.

Source: Huntsman News Release, March 16, 2020

Pidilite Industries completes acquisition of Huntsman's India Based DIY Consumer Adhesive Business

On October 28, 2020, Huntsman Corporation (NYSE: HUN), announced that it had agreed to sell its India based Do-It-Yourself (DIY) consumer adhesives business, part of the Advanced Materials division, to Pidilite Industries Ltd. in an all-cash transaction valued at up to $285 million, excluding customary working capital and other adjustments. The deal also includes the trademark licence for the Middle East, Africa and ASEAN countries.

About Pidilite Corporation
Pidilite Industries Limited is an Indian chemical company that produces products for home and industry. Its product portfolio includes adhesives, sealants, construction chemicals, waterproofing solutions, industrial resins, polymers as well as arts & crafts products. In 2019, the company had approximately 5,750 employees who generated revenue of approximately 1 billion US dollars.

Source: Huntsman News Release, October 28, 2020 and Pidilite News & Media, October 29, 2020

Lone Star Acquires BASFs Construction Chemicals Business

On September 30, 2020, BASF announced that it has sold its construction chemical business to an affiliate of Lone Star, a global private equity firm for a purchase price on a cash and debt-free basis of EURO 3.17 billion. The Construction Chemicals business will operate under the newly founded MBCC Group, headquartered in Mannheim, Germany. With approximately 7,500 employees, the company has production sites and sales offices in more than 60 countries and generated sales of about EURO 2.6 billion in 2019.

About BASF
BASF is a German multinational chemical company founded in 1865 and headquartered in Ludwigshafen, Germany. The company is one of the largest plastics and resin supplier and has one of the most comprehensive plastics portfolios. It also provides a large number of chemicals, dyes, pharmaceutical ingredients and agricultural products. In 2019, BASF employed more than 117,000 people in over 200 countries and generated sales of about US$65 billion.

Source: BASF News Release, September 30, 2020

Mitsubishi Chemical Corporation Completed Acquisition of Gelest

On October 1, 2020, Mitsubishi Chemical Corporation (MCC) announced that it has completed the acquisition of Gelest, Inc. (Gelest) from New Mountain Capital, LLC. (NMC). The companies expect that the integration will accelerate growth and value for their customers. According to Steve Yurich, President of MCA, “MCC’s operating resources and customer network will enhance the ability to bring Gelest’s cutting-edge technologies to market and accelerate the development of new customer solutions.”

About Gelest
Gelest was founded in 1990 by Dr. Barry Arkles and Kevin King. The company develops, manufacturs, and sells silicones, organosilanes, metal-organics, and specialty monomers for high-tech end markets including life sciences, medical devices, microelectronics, and personal care. Gelest has approximately 240 employees (as of July 1, 2019). Both its corporate office and production facilities are located in Morrisville, Pennsylvania.

Source: Mitsubishi News Release, October 2, 2020

Covestro to Acquire DSM’s Coating Resins Business

On 30 September 2020, Covestro announced that it has signed an agreement to acquire the Resins & Functional Materials business (RFM) from Royal DSM for a purchase price of EUR 1.61 billion. This acquisition will add approximately EUR 1 billion in revenues and EUR 141 million EBITDA. The company expects that the integration of RFM will increase revenues of the Coatings, Adhesives, Specialties (CAS) segment of Covestro by more than 40% to about EUR 3.4 billion (2019 pro-forma), making Covestro a leading supplier in the field of sustainable coating resins, with one of the most comprehensive and innovative product portfolios.

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.

Source: Covestro Press Release, 30 September 2020

Huntsman to Acquire Gabriel Performance Products

On 30 September 2020, Huntsman Corporation (NYSE: HUN) announced it has signed an agreement to acquire Gabriel Performance Products, a North American specialty chemical supplier of specialty additives, epoxy resins and epoxy curing agents for the adhesives, sealants, coatings and composite end-markets. Under the terms of the agreement, Huntsman will pay $250 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. The deal is expected to close in the first quarter of 2021 after regulatory approvals.
In 2019, Gabriel generated revenues of approximately $106 million through its three manufacturing facilities located in Ashtabula, Ohio, Harrison City, Pennsylvania and Rock Hill, South Carolina. the purchase price represents an adjusted EBITDA multiple of approximately 11 times, or approximately eight times pro forma for synergies.

About Huntsman
Huntsman Corporation is an North American multinational manufacturer and marketer of chemical products for consumers and industrial customers with revenues of approximately $7 billion in 2019. Its resin portfolio includes epoxy resins, toughening agents, curatives, accelerators, and reactive diluents. The company operates more than 70 manufacturing, R&D and operations facilities in 30 countries and employs approximately 9,000 people within their four distinct business divisions

Source: Huntsman News Release, December 07, 2020