Trinseo to acquire Arkema’s PMMA business
Arkema’s PMMA business is active in several end market applications including automotive and building and construction, enhancing Trinseo’s existing positions in these applications.
In a deal that complements and expands its product lineup in the automotive, building and construction, medical and consumer electronics markets, material supplier Trinseo SA is acquiring Arkema’s polymethyl methacrylates (PMMA) and activated methyl methacrylates (MMA) businesses for US$1.36 billion.
PMMA is a transparent and rigid plastic with a wide range of end uses; Arkema’s PMMA business includes brand names such as Plexiglas in the Americas, Altuglas, Solarkote, and Oroglas.
“Arkema’s PMMA business has consistently delivered attractive margins with products serving many of Trinseo’s end markets,” said Frank Bozich, president and CEO of Berwyn, Pa.-based Trinseo in a Dec. 14 statement. “We believe this is an excellent first step in our portfolio transformation that is expected to ultimately include the separation of some of our commodity businesses.”
In addition, the combination of Trinseo’s existing portfolio with the PMMA business will enable what Trinseo calls “greater focus on future growth markets such as Asia”, which represents approximately 70 per cent of the global PMMA market.
The PMMA business to be sold employs about 860 people and operates seven production sites, with three across the U.S. and Mexico and four in Europe.
Trinseo expects the transaction to close in mid-2021.
Trinseo, formerly known as Styron, was part of the Dow Chemical Co. until it was sold by Dow in 2010.