BERWYN, Pa.—Materials supplier Trinseo has acquired acrylic sheet maker Aristech Surfaces L.L.C. for $445 million.
Berwyn-based Trinseo is buying Aristech of Florence, Ky., from Falcon Private Holdings L.L.C. Falcon is the private investment arm of SK Capital executives Jamshid Keynejad and Barry Siadat.
In a July 19 news release, Trinseo officials described Aristech as "a leading North America manufacturer and global provider of (acrylic) continuous cast and solid surface sheets, serving the wellness, architectural, transportation and industrial markets."
According to a recent Plastics News ranking, Aristech is North America's 46th largest film and sheet maker, with annual sales estimated at $175 million. The firm employs 450 at two production sites.
Trinseo President and CEO Frank Bozich said in the release that the acquisition of Aristech "allows us to provide a full offering of (acrylic) technologies and innovative products that serve customers in new, high-growth markets." He added that the deal "is an important next step toward our goal of becoming a global specialty materials and sustainable solutions provider."
The purchase price is seven times Aristech's projected EBITDA for 2021. The transaction is expected to generate approximately $10 million in annual pretax cost synergies by 2024 and additional revenue synergies by leveraging Trinseo's footprint and customer relationships in North America, Europe and Asia, according to company officials.
Aristech's products are used for in hot tubs, swim spas, counter tops, signage, bath products and recreational vehicles. The business will become part of Trinseo's engineered materials segment.
The transaction should close by the end of the year. It's expected to be funded with cash on hand and existing credit facilities.
Siadat said in a news release that Falcon since 2008 "has actively collaborated with management to establish Aristech as a thriving independent business by improving processes, investing to expand operational capabilities, growing in core hot tub and bath tub applications, and entering new markets and applications in the U.S. and internationally."
Aristech CEO Michael Gilbert added that in the past three years, with Falcon's help, Aristech "has accelerated growth by investing in talent, adding capacity, and enhancing product differentiation."
The Aristech acquisition is Trinseo's second major acrylic sheet deal in less than a year. In December, the firm bought the acrylic business of Arkema S.A. of Colombes, France, for almost $1.4 billion.
The Arkema deal included the Plexiglas brand in the Americas. The Arkema acrylic business employs 860 and operates seven production sites: four in Europe and three in North America.
Trinseo also made a major divestment in May when it sold its synthetic rubber business to Poland's Synthos S.A. in a deal valued at $491 million.
In 2020, Trinseo posted sales of about $3 billion. After the Aristech deal, Trinseo now employs 3,500 at 24 manufacturing sites.
Trinseo's material products include polystyrene and thermoplastic elastomers. In North America, the firm operates the Americas Styrenics joint venture with Chevron Phillips Chemical Co.