Part of the Informa PLC division
This website is operated by one or more companies owned by Informa PLC, and all copyrights belong to them. The registered office of Informa PLC is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.
Celanese has reached an agreement with ExxonMobil Chemical to acquire the latter’s thermoplastic vulcanizate (TPV) business. Previously, Celanese gained a firm foothold in the TPV field by acquiring the seventh-ranked supplier SO.F.TER. The Italian group in 2016. Current transactions include the Santoprene brand as well as intellectual property, production and business assets, and a world-class organization.
TPV is used in various end markets, including automotive, construction, electrical, medical, and industrial. Dynamically vulcanized elastomers are similar to EPDM thermoset rubber in terms of elastic properties, but can be molded into thermoplastics using injection molding, blow molding, and profile extrusion processes. Common applications include weatherproof seals for glass running channels and architectural glass components. In the entire automotive industry, Celanese predicts that by 2040, the use of TPV per vehicle will increase from 2 kg in 2015 to 3 to 4 kg.
"Through the acquisition of the Santoprene business, we are further expanding the unparalleled portfolio of engineering solutions we bring to our customers," said Chairman and CEO Lori Ryerkerk. "This transaction represents a high-return opportunity to deploy our excess cash by leveraging our passive ownership monetization of Polyplastics (sold for $1.575 billion this year) and the continued strong cash generation in our business, So as to promote future shareholder value. We warmly welcome the Santoprene team to Celanese and look forward to their contribution to our continued growth in the field of engineering materials.
"This transaction greatly strengthens our existing elastomer product portfolio, allowing us to bring a wider range of functionalized solutions into targeted growth areas, including future mobility, medical care, and sustainability," Senior Associate of Engineering Materials President Tom Kelly said. "The reputation of the Santoprene brand in TPV is consistent with the flagship brand of engineering materials, including Hostaform in POM and GUR in UHMWPE. With this product as part of the engineering material portfolio and project piping model, we believe that our global Combining commercial and technical teams will generate meaningful shareholder value."
"This agreement with Celanese is in line with our strategy and allows us to focus on serving the growing market for primary olefin derivatives, where we can take advantage of our industry-leading scale, integration and proprietary technology competitive advantages," Said Jack Williams, senior vice president of Exxon Mobil Corporation. Recently, ExxonMobil Chemical has been actively promoting and developing new polypropylene grades, new products in the Vistamaxx polyolefin plastomer (POP) product portfolio, and other initiatives.
Celanese will acquire the Santoprene business from Exxon Mobil for a total purchase price of US$1.15 billion on a cashless and debt-free basis. As part of the transaction, Celanese will acquire the following assets:
More information about text format