Mutares SE & Co. KGaA $MUX (+2,04 %) has signed a landmark agreement to acquire the regional Engineering Thermoplastics business in the Americas and Europe ("ETP business") from SABIC for an enterprise value of USD 450 million.
The transaction is expected to close in the second half of 2026, subject to customary approvals.
The planned acquisition is the largest transaction in Mutares' history and marks the creation of a new strategic segment, "Chemicals & Materials".
Upon completion of the transaction, the new Chemicals & Materials segment will comprise the ETP business as its core platform and will also include Venator Ultramarine Blue Pigments, further strengthening Mutares' positioning in specialty chemicals and advanced materials.
With a resin production capacity of approximately 1,085 kt and a compounding capacity of approximately 780 kt, the ETP business operates a broad international platform with around 2,900 full-time employees and eight production sites in America and Europe.
The product range includes polycarbonate (PC), polybutylene terephthalate (PBT) and acrylonitrile butadiene styrene (ABS) resins and compounding lines, supported by globally recognized brands such as LEXAN, CYCOLOY, VALOX and CYCLOLAC.
The overall business generates sales of approximately USD 2.5 billion.
The ETP business is the world's second largest producer of PC, the leading producer of ABS in the United States and the only producer of PBT in the United States - underscoring its strong competitive position in key engineering thermoplastics categories.
It also serves a diversified customer base in automotive (39%), construction (20%), consumer goods (17%), electrical and electronics (10%) and healthcare (3%), in addition to water tanks and other industrial applications.
Geographically, the business is well balanced with 66% of sales in America and 34% in Europe.
This transformative acquisition enables Mutares to leverage the upstream integrated platform, broad technical capabilities and strong innovation pipeline of the ETP business to accelerate growth, operational excellence and value creation in the newly formed Chemicals & Materials segment.
Abdulrahman Al-Fageeh, Chief Executive Officer of SABIC, said: "This transaction is a continuation of the portfolio optimization program we launched in 2022 to deliver long-term sustainable growth and maximize value creation. As a result of a competitive process, Mutares was selected to continue the legacy we have built through our ETP business in the Americas and Europe. We are confident that this transaction can secure a successful future for the business."
Johannes Laumann, CIO of Mutares, further comments: "The acquisition of SABIC's ETP business is a milestone in Mutares' corporate development. It is not only the largest transaction in our history, but also the starting signal for our new Chemicals & Materials segment. The ETP business' presence in the Americas and Europe, its premium brands and technological depth provide an excellent foundation for building a leading platform for advanced materials and specialty chemicals."
