SABIC Divests European Petrochemicals and Americas/Europe Engineering Thermoplastics for $950 Million
- SABIC sells its European Petrochemicals business to AEQUITA for $500 million.
- The Engineering Thermoplastics business in the Americas and Europe is sold to MUTARES for $450 million.
- The divestments include manufacturing sites in the UK, Netherlands, Germany, Belgium, US, Mexico, Brazil, and Spain.
- Completion of transactions is subject to customary closing conditions and regulatory approvals.
Divestment Details
SABIC has signed agreements to divest its European Petrochemicals (EP) business to AEQUITA for $500 million and its Engineering Thermoplastics (ETP) business in the Americas and Europe to MUTARES for $450 million. The ETP transaction includes an earn-out mechanism based on future cash flow and potential future sale.
Business Operations
The EP business includes products like ethylene, propylene, and various polyethylene and polypropylene compounds, with manufacturing sites in the UK, Netherlands, Germany, and Belgium. The ETP business produces polycarbonate, polybutylene terephthalate, and acrylonitrile butadiene styrene resin, with sites in the US, Mexico, Brazil, Spain, and the Netherlands.
Strategic Goals
These transactions are part of SABIC's strategy to optimize its portfolio, improve cash flow, and focus on high-margin markets. The divestments are expected to enhance EBITDA margins and return on capital employed, while maintaining strategic market access in Europe and the Americas.
Transaction Conditions
Completion of these transactions is subject to customary closing conditions and regulatory approvals, including employee consultations where necessary. SABIC aims to ensure a seamless transition, maintaining business continuity and customer service excellence.
Source: SABIC