Trinseo Pauses Process for Sale of Styrenics Business
26 Juli 2022 - 2:00PM
Business Wire
Trinseo (NYSE: TSE), a specialty material solutions provider,
announced today it has decided to pause the sale of its styrenics
business (the “Business”).
In November 2021 the Company announced that it had begun work to
explore the divestiture of the Business and subsequently launched a
formal sales process in the first quarter of 2022. The scope of the
potential divestiture was expected to include the Feedstocks and
Polystyrene reporting segments as well as the Company’s 50%
ownership of Americas Styrenics LLC.
The process generated broad and significant interest from both
strategic and financial parties. However, the deterioration of
financing markets and the economic uncertainty created by the war
in Ukraine, particularly in European energy markets, has impeded
the Company’s ability to obtain full value for the Business.
Frank Bozich, President and Chief Executive Officer of Trinseo,
said “While the separation of the styrenics business is part of our
transformation strategy, the current economic and financing
environments make it challenging to get a value for the assets that
is reflective of their significant cash generation, and therefore,
we have decided to pause the sale process.”
The delay of the styrenics divestiture does not change the
Company’s transformation strategy of becoming a higher growth,
higher margin and less volatile specialty material and sustainable
solutions provider. The Company intends to reevaluate a potential
sale of the Business when macroeconomic conditions improve.
Bozich continued, “In the meantime, we will utilize the cash
generation of the styrenics and other businesses to invest in
organic growth projects, increase our sustainable product
offerings, decrease our CO2 footprint and return cash to
shareholders.”
About Trinseo
Trinseo (NYSE: TSE), a specialty material solutions provider,
partners with companies to bring ideas to life in an imaginative,
smart, and sustainability-focused manner by combining its premier
expertise, forward-looking innovations and best-in-class materials
to unlock value for companies and consumers. From design to
manufacturing, Trinseo taps into decades of experience in diverse
material solutions to address customers’ unique challenges in a
wide range of industries, including consumer goods, mobility,
building and construction, and medical. Trinseo’s approximately
3,400 employees bring endless creativity to reimagining the
possibilities with clients all over the world from the company’s
locations in North America, Europe, and Asia Pacific. Trinseo
reported net sales of approximately $4.8 billion in 2021. Discover
more by visiting www.trinseo.com and connecting with Trinseo on
LinkedIn, Twitter, Facebook and WeChat.
Cautionary Note on Forward-Looking Statements
This press release may contain forward-looking statements
including, without limitation, statements concerning plans,
objectives, goals, projections, strategies, future events or
performance, and underlying assumptions and other statements, which
are not statements of historical facts or guarantees or assurances
of future performance. Forward-looking statements may be identified
by the use of words like "expect," "anticipate," "intend,"
"forecast," "outlook," "will," "may," "might," "see," "tend,"
"assume," "potential," "likely," "target," "plan," "contemplate,"
"seek," "attempt," "should," "could," "would" or expressions of
similar meaning. Forward-looking statements reflect management’s
evaluation of information currently available and are based on our
current expectations and assumptions regarding our business, the
economy and other future conditions. Because forward-looking
statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. Factors that might cause future results to
differ from those expressed by the forward-looking statements
include, but are not limited to, our ability to successfully
execute our transformation strategy and business strategy; our
ability to integrate acquired businesses; global supply chain
volatility, increased costs or disruption in the supply of raw
materials or increased costs for transportation of our products;
the nature of investment opportunities presented to the Company
from time to time; and those factors discussed in our Annual Report
on Form 10-K, under Part I, Item 1A —"Risk Factors" and elsewhere
in our other reports, filings and furnishings made with the U.S.
Securities and Exchange Commission from time to time. As a result
of these or other factors, our actual results may differ materially
from those contemplated by the forward-looking statements.
Therefore, we caution you against relying on any of these
forward-looking statements. The forward-looking statements included
in this press release are made only as of the date hereof. We
undertake no obligation to publicly update or revise any
forward-looking statement as a result of new information, future
events or otherwise, except as otherwise required by law.
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Trinseo Andy Myers Tel: +1 610-240-3221 Email:
aemyers@trinseo.com
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