Sparks - Mutares

Mutares has completed the acquisition of SABIC’s regional Engineering Thermoplastics (ETP) business in the Americas and Europe at an enterprise value of $450m. The deal is the largest transaction in Mutares’ history and anchors its new Chemicals & Materials segment. The acquired business will operate as NexPoint Materials. SABIC has also disclosed an earnout linked to the business’s free cash flow over the next four years and any subsequent sale.

NexPoint Materials operates eight production facilities across the Americas and Europe, employs c 2,800 people and generates annual revenue of c $2.5bn. Its products include polycarbonate (PC), acrylonitrile butadiene styrene (ABS) and polybutylene terephthalate (PBT) resins and compounds. Mutares describes it as the world’s second-largest PC producer, the leading US ABS producer and the sole US PBT producer. Its end markets include automotive, building and construction, consumer products and electronics.

The acquisition provides Mutares with an upstream-integrated core platform, broad technical capabilities and an established innovation pipeline through which it can expand its Chemicals & Materials segment. It also materially increases Mutares’ US exposure, with the Americas accounting for 66% of the acquired business’s revenue.