Trinseo Announces Commencement of Sale Process for Interest in Americas Styrenics
March 13 2024 - 4:15PM
Business Wire
Trinseo (“Trinseo” or “the Company”) (NYSE: TSE), a specialty
material solutions provider, today announced that it has commenced
a sale process for its 50% ownership in Americas Styrenics LLC
(“AmSty”), a joint venture with Chevron Phillips Chemical Company
LP.
As part of its transformation strategy, the Company had
previously announced its intent to divest its styrenics businesses
(the “Styrenics Businesses”) with a focus on selectively marketing
individual assets or regional businesses. AmSty was established in
2008 and is part of Trinseo’s regional Styrenics Businesses
operating in the Americas.
Trinseo has initiated an ownership exit provision of the AmSty
joint venture agreement which includes a structured mechanism that
is expected to ultimately lead to a sale of Trinseo’s ownership
interest in AmSty. Any proceeds from the sale are expected to be
used to pay down a portion of the recently issued $1.077 billion of
term loans maturing in 2028.
Frank Bozich, President and Chief Executive Officer of Trinseo,
said “The sale of our ownership in AmSty is a logical step in our
transformation as a specialty materials and sustainable solutions
provider. By executing the contractual ownership exit provision, we
have a clear pathway to divest our interest in the joint venture.
We expect the exit process to lead to a definitive arrangement no
later than early 2025.”
About Trinseo
Trinseo (NYSE: TSE), a specialty material solutions provider,
partners with companies to bring ideas to life in an imaginative,
smart, and sustainably 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 building
and construction, consumer goods, medical and mobility.
Trinseo’s approximately 3,100 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 $3.7 billion
in 2023. Discover more by visiting www.trinseo.com and connecting
with Trinseo on LinkedIn, Twitter, Facebook and WeChat.
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available and are based on our current expectations and assumptions
regarding our business, the economy, our current indebtedness, 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 implement proposed restructuring
initiatives and to successfully generate cost savings through
restructuring and cost reduction initiatives; our ability to
successfully execute our business and transformation strategy;
increased costs or disruption in the supply of raw materials;
deterioration of our credit profile limiting our access to
commercial credit; increased energy costs; compliance with laws and
regulations impacting our business; any disruptions in production
at our chemical manufacturing facilities, including those resulting
from accidental spills or discharges; conditions in the global
economy and capital markets; our current and future levels of
indebtedness and ability to service our debt; our ability to meet
the covenants under our existing indebtedness; our ability to
generate cash flows from operations; and those 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,
performance, or achievements 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
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Trinseo Andy Myers Tel: +1 610-240-3221 Email:
aemyers@trinseo.com
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