Lion Copolymer buys Ashland's elastomers business

Lion Copolymer, the US-based synthetic rubber manufacturer, has purchased Ashland's elastomers business based in Port Neches, Texas, for undisclosed amount. The transaction is expected to close by December 31, 2014, contingent on certain customary regulatory approvals and standard closing conditions.
 
The elastomers business accounted for approximately 17 percent of Ashland Performance Materials’ $1.6 billion in sales for the trailing 12 months ended June 30, 2014. This business, which primarily serves the North American replacement tyre market, was acquired by Ashland as part of the International Specialty Products transaction in August 2011. Ashland operates a 250-person manufacturing facility in Port Neches that serves elastomers customers.
 
"This decision fits Ashland's well-established strategy of divesting non-core assets and reinvesting in higher-margin, specialty chemical businesses where we see attractive growth opportunities. We are pleased with the value we received for the business and believe this transaction represents a good strategic fit for Lion,” said James J O'Brien, Chairman and Chief Executive Officer, Ashland.
 
"With the acquisition of the Ashland elastomers business, we are pleased once again to be in this segment of the synthetic rubber business," said Jesse Zeringue, Executive Vice President of Lion Copolymer Holdings.
 
He added, "We think the size of the facility in Port Neches, access to feedstock and excellent storage capacity, combined with specialty products such as hot styrene-butadiene rubber polymers and high styrene polymers, provide us with an excellent growth opportunity. We were also impressed by the quality of the operations and the plant, which has benefited from significant investment over the years."
 
Lion Copolymer has production facilities in Geismar (Louisiana) and its ethylene propylene diene monomer (EPDM) products are used in a wide variety of applications that require superior heat, ozone and chemical resistance, excellent long-term aging and outstanding weathering. Applications include automotive weather seals and hoses, industrial and consumer hoses, weather seals, moulded goods, wire and cable insulations, window profiles, roof sheeting, thermoplastic elastomers, conveyor belts, seals, footwear, and printing rolls and viscosity modifiers for lubricants.