Trinseo acquires Synthomer's vinyl pyridine latex unit

BERWYN, Pa.—Trinseo aims to increase its market footprint in coatings and tire ingredients with its acquisition of Synthomer P.L.C.'s vinyl pyridine latex unit.

VP latex is considered an essential ingredient in binders for coating tire cord fabrics, ensuring a strong bond between the tire cord and rubber during the tire manufacturing process.

"Trinseo is a leader in latex binder chemistry, and a long-standing supplier of synthetic rubber to the tire industry," Frank Bozich, Trinseo CEO and presiden, said in a news release. "This acquisition aligns well with our strategy to grow our latex binders business in coatings and CASE applications, and also reinforces our position as a solutions provider to the high-performance tire segment."

Financial details of the transaction were not disclosed; Trinseo said it funded the acquisition with cash on hand.

Per the agreement with Synthomer, Trineseo will take possession of product formulas, customer lists and intellectual property. All of the unit's physical properties remain with Synthomer, as do employees who worked as part the VP latex unit.

Raw materials will continue to be produced at Synthomer's plant in Marl, Germany, on a contract basis, according to the deal.

Synthomer sold its vinyl pyridine latex operations to Trinseo in order to meet European Commission conditions for the acquisition of Omnova Solutions. Previously, the commission had determined that market for the supply of VP latex in the European Economic Area was highly concentrated, as Synthomer and Omnova were the only players with production capacity in the region.

Trinseo, a global supplier of plastics, latex binding agents and synthetic rubber, serves a number of end markets including automotive, appliances, consumer electronics, medical devices, electrical, building and construction, textiles, paper and boarding and tires.

The company recorded $3.8 billion in net sales in 2019, has around 2,700 employees and operates 17 manufacturing sites around the world.