Trinseo (Berwyn, Pa.; www.trinseo.com) and API Applicazioni Plastiche Industriali S.p.A. (www.apiplastic.com) have signed a definitive agreement for Trinseo to acquire API. API’s key product areas include: soft-touch polymers including TPEs; thermoplastic polyurethanes (TPUs), EVA-based compounds, and two-component PU; as well as a portfolio of bioplastics.
The transaction is expected to close in the third quarter of 2017, following customary closing conditions. Trinseo is funding the purchase of API’s shares through its existing cash on hand.
“Trinseo’s first acquisition is directly aligned with the company strategy to grow the Performance Materials businesses and will benefit customers across a breadth of market applications and geographies,” said Chris Pappas, President and CEO of Trinseo. “API is a sophisticated polymer solutions provider with a strong position in soft-touch polymers – which complement Trinseo’s strengths in rigid polymers. By leveraging API’s advanced manufacturing operations, excellent management, deep technical expertise, and strong customer relationships, we will further strengthen our Performance Plastics businesses to create growth synergies with customers in all global regions.”
The transaction includes API’s manufacturing and research facility at Mussolente, Italy, and all of API’s business, employees and assets. The API management team and employees will join Trinseo’s Performance Plastics business.
“API’s products are distinct from Trinseo’s and are complementary,” said Hayati Yarkadas, Senior Vice President and Business President, Performance Materials. “Trinseo’s rigid plastics have a very strong position in Automotive, Medical and Consumer markets. API’s soft-touch TPE products are often used together with rigid plastics in similar applications, so the combination of Trinseo and API will benefit customers. The potential for the combined product offering, as well Trinseo’s global presence to bring API products into new geographies, means that this powerhouse portfolio of Performance Plastics will be an engine for growth in Trinseo.”
“This is the major step I was looking for since when, nearly ten years ago, we started to prepare API for a new strategy of profitable growth on the international stage,” said Sandro Gusi, General Manager of API. “Our company has an incredibly deep product knowledge and experience, but still our real potential is yet to be exploited. I see a perfect fit with Trinseo as the true key to fully release our resources, with great benefits for both our precious API people, as well as our extremely valuable customers. I’m personally very excited and totally engaged in shaping this new future together.”