Michał Sołowow’s company Synthos will buy a synthetic rubber plant in Germany, from Trinseo. After the transaction (signed last Friday), Synthos will be one of the leading rubber companies in the world.
Trinseo mainly produces synthetic rubber, but also plastics and latex in Schkopau, Germany. It is this part of the activity that Synthos took over.
The company owned by Michał Sołowow will also take over from the Germans all processes and research and development units. “This will allow us to enter new, high-margin markets, including Asian ones,” said the company’s announcement.
Synthos also counts on synergies between its current operations and new business in Germany.
- Thanks to this takeover and strengthening of already strong research and development departments, we will be able to better use the developing market trends – says Zbigniew Warmuz, president of Synthos.
As he adds in the announcement, the company estimates that the acquired plant will be able to generate an EBITDA of EUR 50-60 million within the year. In addition, there are synergy effects, which should amount to as much as EUR 20 million per year. They will result not only from the reduction of administrative costs, but also from the expansion of the market for synthetic rubbers.
The transaction still has to be subject to antitrust proceedings, but the companies hope that all formalities will be completed by the end of 2021.