Polish polymers maker Synthos has gotten the green light from the European Commission to finalise the US$491 million acquisition of US-based Trinseo’s rubber business. In May 2021 Synthos signed an agreement with Trinseo on purchasing its synthetic rubbers production plants located in Schkopau, Germany. The condition for the agreement to be effective was obtaining permission from the anti-monopoly office.
Synthos says that by taking over Trinseo’s Schkopau-based operations, including its manufacturing and research and development facilities, allows it to access new higher-margin markets. Moreover, the transaction expands its geographic footprint, including in Asia, and leverage on significant synergies between the two businesses.
Zbigniew Warmuz, CEO of Synthos, also said that the business brings a range of technologically advanced SSBRs, including functionalised SSBR grades used for high-performance tyres (low resistance tyres and tyres for electric vehicles).
He went on to say, “This acquisition fits into our strategy of continuous product portfolio expansion, which will allow us to satisfy the complete needs of the customer, which is a critical factor for success in the global synthetic rubber market. By making the acquisition and combining our already strong technical and research and development capabilities with those of the Synthetic Rubber Business, we believe that we will even better prepared to take advantage of global megatrends, including the green mobility revolution, circularity and the control of CO2 emissions – says after executing the contract.”
At the time of the acquisition in May, Warmuz had said that the rubber business will approximately contribute at least EUR50-60 million of EBITDA on an annual basis, as well as annualised acquisition-related synergies of above EUR20 million, mainly resulting from volume increases resulting from utilising unused SSBR and ESBR capacity in the Synthetic Rubber Business by addressing other markets and other customer bases and the introduction of new SSBR and Li-PBR grades with higher margins.
The business includes approximately 440 employees, mostly located in Schkopau, Germany, who are expected to join Synthos once the transaction closes.
The transaction is expected to close towards the end of 2021.