Berwyn, PA – Trinseo announced its entry into an agreement with SK AA Holdings, LLC, an affiliate of Falcon Private Holdings, LLC, to acquire Aristech Surfaces LLC, a North America manufacturer and global provider of polymethyl methacrylates (PMMA) continuous cast and solid surface sheets, serving the wellness, architectural, transportation and industrial markets.
“The acquisition of Aristech allows us to provide a full offering of PMMA technologies and innovative products that serve customers in new, high-growth markets,” said Frank Bozich, Trinseo president and chief executive officer. “This is an important next step towards our goal of becoming a global specialty materials and sustainable solutions provider. We are eager to welcome the Aristech team and we believe the complementary technical capabilities and focus on customer relationships will drive superior results for the PMMA business globally.”
The transaction is expected to generate approximately $10 million in annual pretax cost synergies by 2024 and additional revenue synergies by leveraging Trinseo’s footprint and customer relationships in North America, Europe and Asia. The collective technical and commercial teams will work together to accelerate growth and deliver meaningful value to shareholders.
Aristech is a global leading producer of continuous cast acrylic sheet for the wellness, architectural, transportation and industrial markets. Aristech’s products are used for a variety of applications, including the construction of hot tubs, swim spas, counter tops, signage, bath products and recreational vehicles. Aristech’s high margin profile and strong cash flow conversion is expected to drive long-term value for shareholders. The business will become part of Trinseo’s Engineered Materials segment.
The transaction is expected to be funded with cash on hand and existing credit facilities. Trinseo expects its net leverage ratio to be in the low-2x range at the end of the year, including proforma adjustments for the Synthetic Rubber divestiture and the Aristech and Arkema PMMA acquisitions. Trinseo anticipates the transaction will close by year-end 2021 subject to customary closing conditions and regulatory approvals.
Centerview Partners LLC is serving as financial advisor and Reed Smith LLP is serving as legal advisor to Trinseo in connection with the transaction. The Valence Group of Piper Sandler is acting as financial advisor and Morgan Lewis is acting as legal counsel to Falcon and Aristech.
Trinseo will host a conference call to further discuss this announcement on Tuesday, July 20, at 8:00 a.m. Eastern Time.
Commenting on the call will be Frank Bozich, president and chief executive officer, David Stasse, executive vice president and chief financial officer, and Andy Myers, director of investor relations.