Trinseo (NYSE: TSE), a global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber, has signed a definitive agreement to acquire API Applicazioni Plastiche Industriali S.p.A. 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.
Per the terms of the transaction, Trinseo will acquire API’s manufacturing and research facility in Mussolente, Italy, and all of API’s assets. The API management team and employees will join Trinseo’s Performance Plastics unit. API’s legacy owners, the Brunetti family, will support and facilitate a smooth integration.
Capstone’s sector expertise was key in identifying industry trends and valuation drivers. As our investment banking advisor on this transaction for Trinseo’s Performance Materials business, Capstone made introductions to chemical and plastics companies, including API, and provided us financial valuation assistance. They worked closely with Trinseo’s corporate development team in our evaluation of deals that were in line with our strategy and would integrate well into our culture.
Bringing together the unique strengths of Trinseo and API, the combined Performance Plastics business will be well-positioned to grow and capture new business opportunities on a global scale. With a broader portfolio of both rigid and soft-touch polymers, the combined business will be ready to meet an even broader array of application needs. Customers will benefit from new technology and the addition of strong application knowledge from API.
Doug Usifer, Managing Director at Capstone Partners, commented, “It was an honor to have an opportunity to advise Trinseo on their first acquisition. Trinseo’s team did a great job defining a strong growth strategy, and API represents an exciting new growth platform for the Company.”
Awards & Accolades
- 2018: Global Industries Deal of the Year