SABIC Exits Polyolefins, Engineering Plastics in Europe, Americas

SABIC has the signed two strategic transactions to divest its European Petrochemicals (EP) business to AEQUITA and its Engineering Thermoplastics (ETP) business in the Americas and Europe to MUTARES, for a total combined enterprise value of $950 million.

SABIC’s EP business produces and markets various petrochemical and plastic products: ethylene, propylene, low- and high-density polyethylene (LDPE, LLDPE, and HDPE), polypropylene (PP), and value-added polymer compounds, and manages a number of manufacturing sites, including in Teesside, the United Kingdom; Geleen, the Netherlands; Gelsenkirchen, Germany; and Genk, Belgium. 

SABIC has also agreed to sell its ETP business in the Americas and Europe to MUTARES for an enterprise value of $450 million, in addition to an agreed earn-out mechanism that could generate further value to SABIC based on the business’ free cash flow generation over the next four years, as well as in the event of a future sale of the business by MUTARES.

SABIC’s Americas and European ETP business produces polycarbonate (PC), polybutylene terephthalate (PBT), and acrylonitrile butadiene styrene (ABS) resin and compounds, and manages manufacturing sites, including in Mt. Vernon, Ottawa, Bay St. Louis and Burkville, United States; Tampico, Mexico; Campinas, Brazil; Cartagena, Spain; and Bergen op Zoom, the Netherlands.