Page 52 - Plastics News November 2019

Business news

Trinseo acquires Latex Binders Covestro sells PU business

Assets and Rheinmunster Site in to private equity firm H.I.G.
Germany Capital

rinseo a global materials solutions provider and aterial supplier Covestro AG has completed the
Tmanufacturer of plastics, latex binders and synthetic Msale of its European polyurethane (PU) systems
rubber has completed the acquisition from Dow of latex house business to U.S. private equity firm H.I.G.
production facilities and related Capital. The precise financial terms of the deal have
infrastructure at Rheinmunster, not been disclosed, but in earlier statement Covestro
Germany. The transaction said the sales proceeds “amount to a high-double-digit
includes full ownership and euro million sum.The new business, which will trade
operational control of both under the name Plixxent, comprises facilities in the
latex production facilities at Netherlands, Denmark, Spain, Germany and further
Rheinmunster, as well as site businesses in Italy. The business offers tailor-made PU
infrastructure and services systems from its facilities in the Netherlands, Denmark,
contracts, and approximately Spain, Germany and Italy and generates annual sales
108 employees who have of around €230 million. Covestro said operations will
transferred from Dow to Trinseo. “The completion of this continue under H.I.G. at the current facilities, and the
acquisition is directly aligned with Trinseo’s strategy to Leverkusen-based group will retain its strong ties with
grow its Latex Binders business in applications serving the systems houses as a key PU supplier. “Providing
the coatings, adhesives and sealants markets, as well as tailor-made solutions, systems houses serve relevant
specialty paper,” said Frank Bozich, President and CEO market needs. However, in an advanced polyurethanes
of Trinseo. “The Rheinmunster site is well positioned for market like Europe we focus on a more centralized
future expansion, and is ideally located to serve many approach to efficiently address the needs of our
of our European customers. With these acquired assets, customers,” said Covestro’s chief financial officer
we will further enhance our product offerings to provide Thomas Toepfer. Covestro added that with new owner
advanced solutions and chemistries that are required H.I.G., the business now has the perspective to position
by our customers in attractive growth segments.” The itself as an independent, focused player for mid-sized
acquisition enhances Trinseo’s production network across customers.The transaction is expected to close in the
Europe – including an existing Trinseo latex production second half of 2019, subject to regulatory approval
plant in Rheinmunster, Germany, as well as operations in Covestro sold its North American spray PU foam system
Hamina, Finland; Norrkoping, Sweden; and Terneuzen, The
Netherlands. Together this grid of latex binders production
facilities allows Trinseo to supply customers all across
Europe, the Middle East and northern Africa. Trinseo
are focused on delivering innovative and sustainable
solutions to help our customers create products that
touch lives every day — products that are intrinsic to how
we live our lives — across a wide range of end-markets,
including automotive, consumer electronics, appliances,
medical devices, lighting, electrical, carpet, paper and
board, building and construction, and tires. Trinseo had
approximately $4.6 billion in net sales in 2018, with 16 house business to Accella Polyurethane Systems, a
manufacturing sites around the world, and approximately portfolio company of private equity company Arsenal
2,500 employees. Recently at K 2019 Trinseo showcased Capital Partners, in April 2017. Covestro described
its solutions-oriented approach to rethinking innovation the sale as part of its “ongoing efforts to optimize
Going beyond typical product development, the Company its portfolio.” Covestro operates 30 production sites
is focused on delivering forward-looking solutions. worldwide and employs approximately 16,800 people.

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