Trinseo (Berwyn, Pa.) announced that it has commenced a sale process for its 50% ownership in Americas Styrenics LLC (AmSty), a joint venture (JV) with Chevron Phillips Chemical Co. LP (CPChem; The Woodlands, Tex.).
As part of its transformation strategy, Trinseo had previously announced its intent to divest its styrenics businesses (the “Styrenics Businesses”) with a focus on selectively marketing individual assets or regional businesses. AmSty was established in 2008 and is part of Trinseo’s regional Styrenics Businesses operating in the Americas.
Trinseo has initiated an ownership exit provision of the AmSty joint venture agreement which includes a structured mechanism that is expected to ultimately lead to a sale of Trinseo’s ownership interest in AmSty. Any proceeds from the sale are expected to be used to pay down a portion of the recently issued $1.077 billion of term loans maturing in 2028.
Frank Bozich, President and Chief Executive Officer of Trinseo, said “The sale of our ownership in AmSty is a logical step in our transformation as a specialty materials and sustainable solutions provider. By executing the contractual ownership exit provision, we have a clear pathway to divest our interest in the joint venture. We expect the exit process to lead to a definitive arrangement no later than early 2025.”