SABIC (Riyadh, Saudi Arabia; www.sabic.com) has entered into a share purchase agreement to divest its Polymershapes distribution business to Blackfriars Corp., a privately-held investment company. The transaction remains subject to customary closing conditions and is expected to be completed during the fourth quarter of 2016.
SABIC highlighted that this sale will have no effect on the product distribution activities of its Specialties Strategic Business Unit (SBU). Similarly, the sale will not materially impact the value of SABIC’s assets, its financial standing, or the strategic course of its businesses.
The sale of Polymershapes will enable SABIC to focus on its core activities and is a continuation of the company’s ongoing efforts to assess new investment opportunities around the world, enabling it to achieve its strategic goals.
“Polymershapes is an industry leader with a solid strategy and has been a profitable business for SABIC,” said Yousef Al-Benyan, SABIC Vice Chairman and CEO. “As part of our ongoing effort to actively manage our portfolio, we concluded that this business no longer complements our core strategy.
“This divestiture enables SABIC’s Specialties SBU to sharpen our focus on businesses aimed at generating greater value for customers through unique or diversified offerings,” Al-Benyan commented. “The Specialties SBU will direct resources more intently on providing specialty resins and chemicals and/or their formulations or forms. Additionally, we will study potential growth opportunities.”
Ernesto Occhiello, Executive Vice President of SABIC’s Specialties SBU, said, “I feel certain that Polymershapes has a bright future, and I wish the leadership team and the employees of Polymershapes the best of success as they begin this next phase under new ownership.”