Dallas-based Celanese Corp. is looking to bolster its elastomers portfolio with the proposed purchase of ExxonMobil’s Santoprene business, among others, the company announced Wednesday.
For $1.15 billion, the chemical and speciality materials company plans to acquire Irving-based ExxonMobil Chemical Co.’s Santoprene, Dytron, and Geolast trademarks and product portfolios; all customer and supplier contracts and agreements; production facilities; and associated intellectual property.
Celanese selected Kirkland & Ellis as legal counsel, while Goldman Sachs & Co. advised on financial matters.
Adam Shulman, vice president and deputy general counsel for the company’s acetyl chain and business, strategy and development, is leading the in-house efforts for Celanese. Shulman previously served as counsel at Globe Speciality Metals and as an associate in Willkie Farr & Gallagher’s New York office.
Morgan Stanley & Co. provided financial advice to ExxonMobil Chemical with managing director Lily Mahdavi leading the efforts.
White & Case counseled Exxon on legal matters with a team led by Houston partners Morgan U. Hollins and Steven P. Otillar with assistance from associates Luisa Muskus, Janny Gandhi, Yuxi Wang and Carlos Moran.
Celanese plans to fund the purchase, which is expected to close in the fourth quarter pending regulatory approvals, through excess cash and available liquidity.
Santoprene is a thermoplastic vulcanizates product, or TPV, that employs thermoplastic and elastomer properties used across the automotive, construction, appliance, medical and industrial industries.
The addition of Exxon’s TPV business is especially of-note to Celanese as it looks to strengthen its engineered materials business as it relates to future mobility, medical, and sustainability – spaces in which Santoprene is already well-regarded.
“This transaction represents a high-return opportunity to drive future shareholder value by deploying our excess cash from the monetization of our passive ownership in polyplastics and continued strong cash generation in our businesses,” said Celanese chairman and chief executive Lori Ryerkerk in a statement.