ExxonMobil Chemical to sell Santoprene TPV elastomers business to Celanese
ExxonMobil Chemical Company has agreed to sell its global Santoprene TPV elastomers business to Celanese Corporation, a Texas-based chemicals and specialty materials company, for $1.15 billion.
The Santoprene business produces TPV, which caters to a range of end-uses that include automotive, appliance, medical, construction, and industrial. A chemically cross-linked, high-performance material, TPV makes use of the combination of engineering thermoplastic and elastomer properties.
Lori Ryerkerk – chairman and CEO of Celanese said: “With the acquisition of the Santoprene business, we are further expanding the unrivaled portfolio of engineered solutions we bring to our customers.
“This transaction represents a high-return opportunity to drive future shareholder value by deploying our excess cash from the monetization of our passive ownership in Polyplastics and continued strong cash generation in our businesses.
“We are eager to welcome the Santoprene team to Celanese and look forward to their contributions to our continued growth in Engineered Materials.”
Celanese to acquire ExxonMobil Chemical’s Santoprene TPV elastomers business. Photo courtesy of Idawriter/Wikipedia.org.
The sale of the Santoprene TPV elastomers business includes two manufacturing facilities in Pensacola, Florida and Newport, Wales. The associated product, operating and administration buildings, process development and laboratory equipment, intellectual property, and control systems and documentation are also part of the transaction.
Jack Williams – senior vice president of Exxon Mobil Corporation said: “Reaching this agreement with Celanese is consistent with our strategy and allows us to focus on serving the growing market for primary olefin derivatives, where we can leverage our competitive advantages of industry leading scale, integration and proprietary technology.”
ExxonMobil Chemical Company will continue to cater to its elastomers customers with specialty products such as Butyl rubber and Vistalon, which are used in a range of applications.
The deal, which is subject to regulatory processes and third-party approvals among other conditions, is anticipated to close in Q4 2021.