Synthos finalizing $455M acquisition of Trinseo's rubber business

OŚWIĘCIM, Poland—The European Commission has approved the $455-million acquisition of Trinseo's rubber business by Polish materials supplier Synthos S.A.

In an Oct. 22 statement, Synthos said it had received the green light from the European Commission to finalize the takeover, which includes purchasing the synthetic rubbers production plants located in Schkopau, Germany.

The purchase, announced earlier in May, covers Trinseo's manufacturing and research and development facilities and enables access to new higher-margin markets, according to the Synthos announcement.

Moreover, the transaction expands the company's geographic footprint, including in Asia, and offers "significant synergies" between the two businesses.

"We believe that the synthetic rubber business brings a range of technologically advanced SSBRs (solution styrene butadiene rubber), including functionalized SSBR grades used for high-performance tires," Synthos CEO Zbigniew Warmuz said.

The acquisition, he added, fits into the company's strategy of continuous product portfolio expansion.

"By making the acquisition … we believe that we will (be) even better prepared to take advantage of global megatrends, including the green mobility revolution, circularity and the control of CO2 emissions," Warmuz added.

Trinseo's SR business employs about 440 people, who are expected to join Synthos once the transaction closes.

Synthos estimates that the Schkopau plant will bring in annual earnings (EBITDA) of at least $57 million to $68 million. In addition, it expects synergies of over $20 million from the transaction.

Trinseo's SR business manufactures solution SSBR and emulsion styrene-butadiene rubber (ESBR) at its manufacturing hub in Schkopau. Official production capacity for SSBR is 200 metric kilotons per annum (ktpa) and 130 ktpa for ESBR.

The unit reported earnings (adjusted EBITDA) of $41 million (€36 million) on sales of $441 million in 2019.

Based in Oświęcim, Poland, Synthos manufactures SSBR, ESBR, nitrile butadiene rubber, high-styrene rubber and butadiene rubber.

In addition to rubber, the Polish company also produces polystyrene, adhesives, vinyl acetate-based dispersions, acrylic copolymers and styrene-acrylic polymers.