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Trinseo Outlines Plan to Divest Styrenics Business Including Polystyrene
November 08, 2021

Global plastics, latex, and synthetic rubber manufacturer Trinseo reiterated during its Q3 quarterly earnings call today that it plans to divest its styrenics business with plans to launch a formal sales process in Q1 2022. The scope of potential divestiture is expected to include the Feedstocks and Polystyrene reporting segments as well as Trinseo's 50% ownership of Americas Styrenics.

The planned divestment of its styrenics business is part of the company's goal to become a specialty materials and sustainable solutions provider with the focus on four end markets; building and construction, consumer goods, mobility and medical. Trinseo has already made progress towards this goal, with the additions of Arkema's PMMA business and Aristech Surfaces along with the announced divestiture of Synthetic Rubber, to Synthos.

The company said it expects the latest divestment will result in financial performance that demonstrates higher growth rates, lower volatility, higher margins and higher free cash flow.

Trinseo's President and CEO Frank Bozich said during his company's earnings call that they believe there are three categories of buyers who will have interest in the styrencis business.

"Obviously, there is strategics who are in the same value chain that we anticipate will be interested," Bozich said. "We also think there are regional players who will want exposure to North America and European styrenics markets. And then lastly, we believe that there is a good number of financial sponsors who are looking to do a roll-up, if you will, in the aggregate assets that offer a high cash-on-cash return. So we expect to have a good process, robust number of participants in those categories."

By Brian Balboa for The Plastics Exchange.

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