A&O Shearman Advises SABIC on Divestiture of Petrochemicals and Engineering Thermoplastics Businesses in Europe and the Americas

A&O Shearman represented Saudi Basic Industries Corporation (SABIC) in the sales of its European Petrochemicals business to AEQUITA and its Engineering Thermoplastics business in the Americas and Europe to Mutares. Under the Engineering Thermoplastics transaction, SABIC agreed to sell its regional Engineering Thermoplastics business in the Americas and Europe to Mutares for an enterprise value of USD 450 million, together with an earn-out mechanism that may generate additional consideration for SABIC based on the business’s free cash flow over the next four years and in the event of a future sale by Mutares. The ETP business manufactures polycarbonate (PC), polybutylene terephthalate (PBT) and acrylonitrile butadiene styrene (ABS) resins and compounds, operating sites in the United States, Mexico, Brazil, Spain and the Netherlands. The transaction is intended to establish a focused ETP platform expected to deliver significant operational and commercial efficiencies. Under the second transaction, SABIC agreed to sell its European Petrochemicals business to AEQUITA for an enterprise value of USD 500 million. The EP business produces and markets ethylene, propylene, polyethylene (LDPE and HDPE), polypropylene (PP) and polymer compounds, with manufacturing sites in the United Kingdom, the Netherlands, Germany and Belgium. The divestment supports consolidation in the European olefins and polyolefins sector and creates a platform for enhanced product offerings and operational synergies. Together, the two transactions carry a combined enterprise value of USD 950 million and will enable SABIC to recycle capital into higher-return opportunities, improve free cash flow and concentrate on core operations while retaining strategic access to priority markets in Europe and the Americas. A&O Shearman represented SABIC with a team composed by: Andrew Schoorlemmer, Partner, London; Romain Dambre, Partner, New York; Oliver Bacon, Partner, London; Sam Brooks, Senior Associate, London; Hannah Marshall, Associate, Dallas; James Heaney, Associate, Boston; Yuwei Liu, Associate, New York; Roy Ji, Associate, New York; Jack Keleher, Associate, London; Magali Wade, Associate, London.

A&O Shearman Advises SABIC on Divestiture of Petrochemicals and Engineering Thermoplastics Businesses in Europe and the Americas

Read the full story