Celanese, Blackstone form global acetate tow JV

Celanese, Blackstone to form global acetate tow JV

11:18 AM, 21st June 2017
Mark Rohr, chairman and CEO, Celanese Corporation. (File photo)
Mark Rohr, chairman and CEO, Celanese Corporation. (File photo)

DALLAS/ NEW YORK, US/ LONDON, UK: Celanese Corporation (CE) and The Blackstone Group LP have entered into a definitive agreement to form a global acetate tow joint venture (JV). Celanese and Blackstone will own 70 percent and 30 percent of the JV, respectively.

Under the agreement, Celanese will combine its cellulose derivatives business unit (including its equity interest in existing JVs with China National Tobacco Corporation) with Blackstone’s Rhodia Acetow business unit, which it recently acquired from Solvay SA.

The JV will have an extended global footprint that includes eight wholly-owned manufacturing facilities and three existing JV sites. The complementary nature of the tow businesses and a combination of technology expertise will result in synergies mainly from optimisation of supply chain networks and procurement of raw materials, energy, equipment, and other services.

Celanese will receive $1.6 billion in cash at the closing of the deal. The transaction would add to its earnings per share after a year, the company said.

“This is an exciting opportunity for Celanese to partner with Blackstone in a way that creates significant value for all stakeholders. The combination of these tow assets will enhance our ability to serve customers more efficiently and reliably from a global production footprint while also creating growth opportunities for employees,” said Mark Rohr, chairman and CEO of Celanese.

“The combination of these two companies provides an excellent opportunity to create a new, international business focused on innovation and growth to the benefit of its customers and employees. We are excited to work with Celanese on this strategic development,” added Lionel Assant, head of private equity Europe, Blackstone.

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