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    Home > Chemicals Industry > Rubber Plastic News > $1.15 billion!

    $1.15 billion!

    • Last Update: 2022-11-11
    • Source: Internet
    • Author: User
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    Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, announced June 30 that it has signed a definitive agreement to acquire ExxonMobil's Santoprene™ TPV elastomer business
    .
    Under the agreement, Celanese will acquire the industry-renowned Santoprene™ brand as part of its broad TPV product portfolio, along with related intellectual property, manufacturing and commercial assets and a world-class team

    .

    "By acquiring the Santoprene™ business, we will further expand our ability to provide our customers with an unparalleled portfolio of engineered solutions
    ," said Lori Ryerkerk, chairman and chief executive officer of the company.
    "This transaction represents a high-reward opportunity to deploy Sierra remaining cash on Nice's balance sheet and continuing to generate strong cash flow across our business to drive future shareholder value

    .
    We warmly welcome the Santoprene™ team to Celanese and look forward to their continued support for Celanese Engineered Materials contribute to growth

    .

    "This transaction significantly strengthens our existing elastomer portfolio and enables us to bring a broader range of functional solutions into future mobility solutions, medical and sustainability, among other targeted growth areas
    .
    " Senior Vice President, Engineered Materials Tom Kelly said, “The Santoprene™ brand’s reputation in the TPV space matches Celanese’s flagship brands of engineered materials, including Celanese Hostaform® polyoxymethylene (POM) and GUR® ultra-high molecular weight polyethylene UHMW-PE

    .
    With this product part of the engineered materials portfolio and project pipeline, we are confident that our combined commercial and technical teams around the world will generate significant shareholder value

    .
    "

    Transaction overview

    Transaction overview

    ExxonMobil's Santoprene™ business is a leading global producer of TPVs serving a variety of end uses including automotive, construction, appliance, medical and industrial
    .
    TPV is a chemically cross-linked high-performance material with a unique combination of engineering thermoplastic and elastomer properties

    .
    The Santoprene™ product portfolio is highly functional for specific application needs and has industry-leading intellectual property

    .

    Under the terms of the definitive agreement, Celanese will acquire ExxonMobil's Santoprene™ business on a cash- and debt-free basis for a total consideration of $1.
    15 billion

    .
    As part of the transaction, Celanese's acquisition includes:

    ● Santoprene™, Dytron™ and Geolast™ trademarks and product portfolio

    ● All customer and supplier contracts and agreements

    ● Two world-class production facilities in Pensacola, Florida, USA and Newport, Wales, UK, with an annual production capacity of over 1.
    9 million tons

    ● TPV has a comprehensive intellectual property portfolio and related technology and R&D assets

    ● Approximately 350 highly skilled employees, including world-class manufacturing, technical and commercial organizations

    The company expects the transaction to be immediately accretive to adjusted earnings per share and free cash flow in 2022
    .

    The acquisition is expected to be funded by the remaining cash and available liquidity on Celanese's balance sheet
    .
    The transaction is subject to regulatory approvals, spinoff preparations and other customary closing conditions that will determine the timing of closing

    .
    The transaction is expected to close in the fourth quarter of 2021

    .

    Celanese is served by Kirkland & Ellis LLP as lead counsel and Goldman Sachs & Co.
    LLC as financial advisor

    .

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