(RTTNews) - Trinseo (TSE) has reached a binding agreement with Arkema S.A. to acquire Arkema's polymethyl methacrylates and activated methyl methacrylates businesses. The purchase price is approximately $1.36 billion. Trinseo is also exploring the potential divestiture of its Synthetic Rubber business.
"This acquisition will be a catalyst for portfolio transformation toward becoming a higher margin, less cyclical solutions provider," said Frank Bozich, Trinseo President and Chief Executive Officer.
Trinseo noted that the company is implementing a dividend reduction to $0.08 per share per quarter and is suspending its share repurchase program to prioritize leverage reduction and preserve financial flexibility.
For the fourth quarter, Trinseo projects adjusted earnings per share of $1.69 - $1.95.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
