SABIC completes sale of Engineering Thermoplastics business in Americas and Europe to Mutares
- Enterprise value of the transaction: $450 million.
- Buyer: Mutares SE & Co.
- Divested ETP business reported operating losses of approximately $498 million for the year ended 31 December 2025 and approximately $173 million for the six months ended 30 June 2026.
- On a pro forma basis, the carve-out improved SABIC’s EBITDA margin by approximately 130–140 basis points.
Transaction
SABIC completed the divestment of its Engineering Thermoplastics (ETP) business in the Americas and Europe to Mutares SE & Co on 3 August 2026 for an enterprise value of $450 million.
Financial impact
The divested ETP unit reported a loss from operations of about $498 million for the year ended 31 December 2025 and about $173 million for the six months ended 30 June 2026. SABIC says the carve-out improves its pro forma EBITDA margin by roughly 130–140 basis points.
Strategic rationale
SABIC frames the sale as part of a portfolio optimization strategy to exit structurally underperforming assets, reduce cash losses, improve Return on Capital Employed (ROCE) and maximise long‑term shareholder value while sharpening strategic focus.
Background
The company first announced plans to divest the Americas and Europe ETP business on 8 January 2026; completion was subject to customary closing conditions and regulatory approvals. SABIC reiterated its commitment to serving customers using its technology and innovation capabilities.
Source: SABIC
