Celanese Announces Acquisition of Emulsion Polymer Business from ICI
Celanese announcedthat it has agreed to purchase Vinamul Polymers, the emulsion polymer business of National Starch and Chemical Company (NSC), for $208 million, subject to regulatory approvals and other customary conditions. NSC is a subsidiary of Imperial Chemical Industries PLC (ICI).
Emulsion polymers enhance the performance of adhesives, paints and coatings, textiles, paper, building products and other goods. The Vinamul Polymers product line includes vinyl acetate-ethylene (VAE) copolymers, vinyl acetate homopolymers and copolymers, and acrylic and vinyl acrylic emulsions.
For the year ended December 31, 2003, Vinamul Polymers had sales of $335 million, of which $97 million were internal sales to other NSC and ICI businesses. Operating profit was $18 million. The business has approximately 600 employees and operates manufacturing facilities in the U.S., Canada, the U.K., and The Netherlands.
The acquisition is expected to be financed through an amendment and expansion of the senior credit facilities of a subsidiary of Celanese Corporation.
"The Celanese and Vinamul Polymers businesses complement each other geographically and technologically", Weidman noted. "Together, we can offer customers a wider range of product solutions, a more reliable source of supply, and the ability to expand with them globally."
Celanese's current emulsion polymers business, which was acquired from Clariant in 2002, is primarily focused in Europe, while the Vinamul business includes complementary positions in both Europe and North America. Celanese employs state-of-the-art emulsions technology for use in low-emission paints and coatings, adhesives and other applications. Vinamul, among other things, is a recognized leader in emulsions for use in non-woven fabrics, paperboard and glass fiber coatings.
As part of the agreement, NSC will continue to supply Vinamul Polymers with starch, dextrin and other specialty ingredients following the acquisition. Celanese will supply the Vinamul business with vinyl acetate monomer (VAM) and polyvinyl alcohols (PVOH).
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