Celanese to sell Acrylates Business to Dow
Celanese AG and The Dow Chemical Company announced today that they have reached an agreement for Dow to purchase the acrylates business of Celanese.
Dow will acquire Celanese's acrylates business product line, including inventory, intellectual property and technology for crude acrylic acid, glacial acrylic acid, ethyl acrylate, butyl acrylate, methyl acrylate and 2-ethylhexyl acrylate, as well as acrylates production assets at the Celanese Clear Lake, Texas facility. In related agreements, Celanese will provide certain contract manufacturing services to Dow, and Dow will supply acrylates to Celanese for use in its emulsions production. The transaction remains subject to customary closing conditions, including regulatory approvals.
David Weidman, Chief Operating Officer of Celanese, commented, "This agreement helps fulfill our strategic commitment to a more focused portfolio and puts Celanese and the acrylates business in a better position to generate value. At the same time, we secure an economical raw material supply from Dow for our recently acquired Emulsions business in Europe. Celanese is committed to reliable service for our acrylates customers and to a seamless transition of the business."
According to Andrew Liveris, President of Dow's Performance Chemicals group, "This proposed acquisition positions our current acrylics activities into a complete, integrated acrylic acid chain, establishing Dow as a major presence in higher value, less cyclical, downstream markets. It sends a strong message to customers that we are committed to providing a secure, long-term source of quality acrylic-based products and a broader offering of acrylic esters. Additionally, through raw material integration, we gain a more competitive cost position for our UCAR Emulsion Systems business, Superabsorbent Products business, and other Dow specialty products."
Acrylic acid is used to produce acrylic esters and superabsorbent polymers. Major end uses for acrylic esters include acrylic latex emulsions that are used in surface coatings, paints, textiles, and adhesives. Superabsorbent polymers are used primarily in disposable diapers and other absorbent personal care products.
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