BERWYN, Pa.—Trinseo S.A. has signed a definitive agreement to acquire Dow Chemical Co.'s latex production facilities and related infrastructure in Rheinmunster, Germany, for $44.7 million.
The transaction is expected to close in the second half of 2019, subject to Euopean Union regulatory approval and customary closing conditions, Trinseo said May 2.
The deal includes full ownership and operational control of two latex production facilities at Rheinmunster, as well as site infrastructure and services contracts.
The 114 employees of the business are expected to transfer from Dow to Trinseo, according to the announcement.
Trinseo's aims to grow its latex binders businesses, particularly in applications serving the adhesives and construction industry, said Frank Bozich, president and CEO of Trinseo.
The acquisition will allow Trinseo "to produce a wider variety of products, invest capital for technology upgrades and optimize operations for the mix of products," Bozich said.
Trinseo already operates a latex production plant Rheinmunster, in addition to sites in Hamina, Finland; Norrkoping, Sweden; and Terneuzen, Netherlands.
"The Rheinmunster site is well situated for future expansion, as it is already the home to our global research and development center for latex binders," said Hayati Yarkadas, Trinseo SVP and business president, performance materials.