Ineos to sell EPS business to Synthos

Ineos Enterprises has reached an agreement in principle, to sell Ineos Styrenics, its Expandable Polystyrene Business (EPS), to Synthos S.A. for EUR80 million. Ineos Styrenics produces EPS for the building, construction and packaging industries at manufacturing sites at Wingles and Ribécourt in Northern France and Breda in the Netherlands. It is the largest producer of EPS in Europe with 310,000 tonnes of production capacity, representing of 20% of European capacity.

The three production sites are supported by its technology Centre in Breda, which is a purpose-built research, development and product testing facility, including a research laboratory and pilot plant facilities. Customer Service, Logistics and Finance groups are also located in Breda. The business employs c. 250 people who will transfer as part of this deal.

“The combination of Ineos Styrenics with Synthos will accelerate growth and deliver additional benefits to customers of both companies, giving them access to expanded technologies and an enhanced product portfolio. It will also offer new opportunities for employees who will be part of a company that is focussed on, and strategically committed to the long term future of the expanded polystyrene market,” said Ashley Reed, CEO of Ineos Enterprises.

The agreement to sell the business to Synthos represents an important step in the on-going development of the EPS business. Synthos is the third largest European producer of EPS and a leading European manufacturer of dispersions and lattices for coating, construction additives, and adhesives for the woodworking and paper industries. It was also the first European manufacturer of emulsion rubbers and is a leading manufacturer of PS for foaming applications. The company is traded on the Polish stock exchange with its headquarters located in Oświęcim.

Completion of the transaction is likely to occur in the second half of 2016, subject to customary regulatory approvals.