SABIC Announces Agreement to Divest Its Polymershapes Business
Houston, TX/ US -- September 6, 2016
SABIC, a global leader in diversified chemicals, today announced it has entered into a share purchase agreement to divest its Polymershapes distribution business to Blackfriars Corp., a privately-held investment company. The transaction remains subject to customary closing conditions and is expected to be completed during the fourth quarter of 2016.
SABIC highlighted that this sale will have no effect on the product distribution activities of its Specialties Strategic Business Unit (SBU). Similarly, the sale will not materially impact the value of SABIC’s assets, its financial standing, or the strategic course of its businesses.
The sale of Polymershapes will enable SABIC to focus on its core activities and is a continuation of the company’s ongoing efforts to assess new investment opportunities around the world, enabling it to achieve its strategic goals.
“Polymershapes is an industry leader with a solid strategy and has been a profitable business for SABIC,” said Yousef Al-Benyan, SABIC Vice Chairman and CEO. “As part of our ongoing effort to actively manage our portfolio, we concluded that this business no longer complements our core strategy.
“This divestiture enables SABIC’s Specialties SBU to sharpen our focus on businesses aimed at generating greater value for customers through unique or diversified offerings,” Al-Benyan commented. “The Specialties SBU will direct resources more intently on providing specialty resins and chemicals and/or their formulations or forms. Additionally, we will study potential growth opportunities.”
Ernesto Occhiello, Executive Vice President of SABIC’s Specialties SBU, said, “I feel certain that Polymershapes has a bright future, and I wish the leadership team and the employees of Polymershapes the best of success as they begin this next phase under new ownership.”
SABIC is a global leader in diversified chemicals headquartered in Riyadh, Saudi Arabia. We manufacture on a global scale in the Americas, Europe, Middle East and Asia Pacific, making distinctly different kinds of products: chemicals, commodity and high performance plastics, agri-nutrients and metals.
We support our customers by identifying and developing opportunities in key end markets such as construction, medical devices, packaging, agri-nutrients, electrical and electronics, transportation and clean energy.
SABIC recorded a net profit of SR 18.77 billion (US$ 5 billion) in 2015. Sales revenues for 2015 totalled SR 148.09 billion (US$ 39.49 billion). Total assets stood at SR 328.22 billion (US$ 87.53 billion) at the end of 2015.
SABIC has more than 40,000 employees worldwide and operates in more than 50 countries. Fostering innovation and a spirit of ingenuity, we have 10,960 global patent filings, and have significant research resources with innovation hubs in five key geographies – USA, Europe, Middle East, South East Asia and North East Asia.
The Saudi Arabian government owns 70 percent of SABIC shares with the remaining 30 percent publicly traded on the Saudi stock exchange.
At SABIC, we combine a rich track record of doing what others said couldn’t be done with a deep understanding of our customers. But our true impact is as a collaborative partner who can help our customers achieve their ambitions by finding solutions to their challenges. We call this ‘Chemistry that matters™’.
SABIC’s Polymershapes Business
Polymershapes is one of the world’s largest distributors of plastic sheet, rod, tube, film and associated products, with 70+ years of industry-leading heritage, providing:
• Innovative solutions for our customer’s material requirements and applications, delivered by 70+ stocking branches
• Serving 35,000 customers in a wide variety of industries with consistency, accuracy and integrity
• Expert capabilities: Cut-to-size, fabrication, machining, film conversion and much more
• Same-day delivery from the industry’s largest inventory – thousands of quality products from trusted manufacturers
For more information, please visit http://www.sabicpolymershapes.com
MMA and PMMA plant set for production / Construction of joint venture facility in Saudi Arabia began in 2014 Sabic is set to commence production.
Chemistry that matters
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