Celanese sells polyvinyl alcohol (PVOH) business to Sekisui Chemical

Thu. July 02, 2009; Posted: 02:24 PM

Jul 02, 2009 (Datamonitor Financial Deals Tracker via COMTEX) -- SKSUF | Quote | Chart | News | PowerRating -- Celanese Corporation has sold its polyvinyl alcohol (PVOH) business to Sekisui Chemical Co., Ltd., a Japan-based company engaged in the manufacture of chemicals and resin processing.

Celanese is a US-based manufacturer and distributor of acetic acid, vinyl acetate monomer, and PVOH resin.

Announcement (April 27, 2009):

Celanese has entered into an agreement to sell its PVOH business to Sekisui Chemical for approximately $173 million, excluding the value of accounts receivable and payable retained by Celanese.

Under the terms of the agreement, Sekisui will establish new subsidiaries through which it will acquire the PVOH business from Celanese's subsidiaries Celanese, Ltd. (US) and Celanese Chemicals Iberica S.L. (Spain). The transaction also includes Celanese's facilities in Calvert City, Kentucky, Pasadena, Texas, one unit within the complex at Tarragona, Spain, and resources from its Houston technology center.

The PVOH business reported sales of $296 million for the year ending December 31, 2008.

The transaction is expected to close in June 2009.

Deal Value (US$ Million) 173
Deal Type                Acquisition
Sub-Category             Asset Purchase
Deal Status              Completed: 2009-07-01

Deal Participants

Target (Company)   Celanese Corporation - Polyvinyl Alcohol Business
Acquirer (Company) Sekisui Chemical Co., Ltd.
Vendor 1 (Company) Celanese Chemicals Iberica S.L.
Vendor 2 (Company) Celanese, Ltd.

Deal Rationale

The acquisition of the business of PVOH resin raw materials used to produce PVB resin would enable Sekisui Chemical to secure a stable supply of raw material, enhance its local production capabilities, develop technological synergies for raw materials, and strengthen supply chain.

For full details on Celanese (CE) click here. Celanese (CE) has Short Term PowerRatings of 5. Details on Celanese (CE) Short Term PowerRatings is available at This Link.

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