SCHKOPAU, Germany—Synthos S.A. finalized Dec. 1 the purchase of Trinseo S.A.'s synthetic rubber business.
The acquisition includes manufacturing sites, intellectual property, and research and development facilities, most of which are located in Schkopau. The move brings Synthos' combined annual SR production capacity for ESBR, PBR and SSBR to more than 800,000 metric tons, while enhancing and streamlining its R&D capabilities.
"The Schkopau plant will enable Synthos to utilize the entire range of technologically advanced solution-styrene butadiene rubber, including functionalized styrene-butadiene rubbers used primarily in technologically advanced tires with low rolling resistance … including tires for electric cars." Synthos CEO Zbigniew Warmuz said in a statement.
About 440 former Trinseo employees join the Synthos team.
Synthos, in a news release issued the day of the closing, said that the acquisition positions the company for a more sustainable future, both in terms of its operations and its products.
"The acquisition of the Schkopau plant is the largest transaction in the history of our company," Synthos Group owner Michał Solowow, said in a statement. "Synthos will strengthen its position in the global synthetic rubber market by becoming the second-largest manufacturer in this segment. But more importantly, with this transaction, we are acquiring the most advanced product portfolio in the world that addresses a critical ecological need, namely the reduction of CO2 emissions. The portfolio can be fully used in tires for electric vehicles."
As it was working to finalize the Trinseo unit purchase, Synthos adopted a sustainable development strategy that includes goals to, by 2028, move away from coal as an energy source and reduce greenhouse gas emissions by 28 percent. The sustainability plan also aims produce 100 percent sustainable products by 2030 before reaching carbon neutrality by 2050.
The Trinseo deal, first disclosed in July, was amended slightly in October. Schkopau, Germany-based Synthos paid $402.4 million—down from the original $449.4 million—in cash in exchange for an equivalent amount ($47 million) of net working capital to be collected by Trinseo.
Trinseo expects the net cash proceeds from the sale to be about $400 million after relevant transaction-related costs and taxes are factored.
In the years following the closing, Synthos expects the Schkopau-based plant it has acquired to generate between $90 million and $114 million annually.
