WAYNE, Pa. - Trinseo (NYSE: NYSE:TSE), a global provider of specialty material solutions, announced today its initiation of a sale process for its 50% ownership in Americas Styrenics LLC (AmSty), a joint venture with Chevron (NYSE:CVX) Phillips Chemical Company LP. The decision is part of Trinseo's strategic transformation to divest from its styrenics businesses, focusing on marketing individual assets or regional businesses.
AmSty, which was established in 2008, represents a portion of Trinseo's operations in the Americas. The company has triggered an ownership exit provision from the joint venture agreement, which is expected to lead to a definitive sale of its stake in AmSty by early 2025.
According to Frank Bozich, President and Chief Executive Officer of Trinseo, "The sale of our ownership in AmSty is a logical step in our transformation as a specialty materials and sustainable solutions provider." He added that the execution of the contractual ownership exit provision offers a clear pathway to divest the company's interest in the joint venture.
The proceeds from the sale are anticipated to be allocated towards reducing a portion of Trinseo's recently issued term loans, which are due in 2028, amounting to $1.077 billion.
Trinseo, with approximately 3,100 employees worldwide, reported net sales of around $3.7 billion in 2023. The company focuses on delivering material solutions for a variety of industries, including building and construction, consumer goods, medical, and mobility, emphasizing sustainable and innovative approaches.
This move is based on a press release statement and is reflective of Trinseo’s ongoing efforts to align its portfolio with its long-term strategy. It is important to note that forward-looking statements in the press release are not guarantees of future performance and are subject to various risks and uncertainties.
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