Celanese Completes Acquisition of Santoprene™ TPV Elastomers Business

Rhea-AI Summary

Celanese Corporation (NYSE: CE) has successfully acquired the Santoprene™ TPV elastomers business from Exxon Mobil Corporation for $1.15 billion. This strategic acquisition enhances Celanese's engineered materials portfolio, adding renowned trademarks such as Santoprene™ and expanding production capacity with two world-scale facilities in Florida and Wales. The deal includes customer contracts and a comprehensive intellectual property portfolio, bolstering Celanese's position in targeted growth areas and promising significant shareholder value.

Positive

• Acquisition strengthens Celanese's engineered materials portfolio with Santoprene™, Dytron™, and Geolast™ brands.
• Increases production capacity with two large facilities, enhancing operational capability.
• Expands customer and supplier contracts, potentially increasing revenue streams.
• Brings on board approximately 320 skilled employees, enhancing technical and manufacturing capabilities.

Negative

• None.

Brings a global leader and flagship brand in thermoplastic vulcanizates (TPV) to Engineered Materials’ leading customer solution set

DALLAS--(BUSINESS WIRE)-- Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today announced it has completed the acquisition of the Santoprene™ TPV elastomers business of Exxon Mobil Corporation.

“We are excited to welcome the Santoprene™ team to Celanese,” said Lori Ryerkerk, chairman and chief executive officer. “They have built an industry-renowned brand and product portfolio in the Santoprene™ business that will immediately strengthen the unrivaled portfolio of engineered solutions we bring to our customers. We look forward to the partnership of our commercial and technical teams to take a wider range of Engineered Materials’ solutions into targeted growth areas that will generate meaningful shareholder value.”

The Company announced the acquisition of the Santoprene™ business in June 2021 for a total purchase price of $1.15 billion. As part of the transaction, Celanese has acquired the following:

• Santoprene™, Dytron™, and Geolast™ trademarks and product portfolios
• Customer and supplier contracts and agreements
• Two world-scale production facilities in Pensacola, Florida, U.S. and Newport, Wales, U.K. with over 190 kt of total annual production capacity
• Comprehensive TPV intellectual property portfolio with associated technical and R&D assets
• Approximately 320 highly-skilled employees including world-class manufacturing, technical, and commercial organizations

About Celanese

Celanese Corporation is a global chemical leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Our businesses use the full breadth of Celanese's global chemistry, technology and commercial expertise to create value for our customers, employees, shareholders and the corporation. As we partner with our customers to solve their most critical business needs, we strive to make a positive impact on our communities and the world through The Celanese Foundation. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2020 net sales of $5.7 billion. For more information about Celanese Corporation and its product offerings, visit www.celanese.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211201005736/en/

Celanese Contacts:

Investor Relations

Brandon Ayache

+1 972 443 8509

brandon.ayache@celanese.com



Media Relations – Global

Jamaison Schuler

+1 972 443 4496

jamaison.schuler@celanese.com



Media Relations Europe (Germany)

Petra Czugler

+49 69 45009 1206

petra.czugler@celanese.com

Source: Celanese Corporation

FAQ

What is the significance of the Santoprene™ acquisition for Celanese (CE)?

The acquisition of Santoprene™ enhances Celanese's engineered materials portfolio, providing a well-known brand and expanding market reach.

How much did Celanese pay for the Santoprene™ business?

Celanese acquired the Santoprene™ TPV elastomers business for $1.15 billion.

What assets did Celanese acquire from Exxon Mobil?

Celanese acquired trademarks, customer contracts, two production facilities, and a comprehensive TPV intellectual property portfolio.

What impact does the acquisition have on Celanese's production capacity?

The acquisition increases Celanese's total production capacity by over 190 kt annually with two world-scale facilities.

When was the acquisition of Santoprene™ completed?

The acquisition was completed in December 2021.