Sabic sells Polymershapes to Blackfriars

Riyadh-headquartered petrochemical firm Sabic is selling its Polymershapes unit to US privately-owned investment firm Blackfriars Corp. No terms were disclosed.

The deal is expected to be completed during the fourth quarter of this year. The unit is a non-core business and its divestment is not expected to affect Sabic's distribution of other products or have a substantial impact on its finances, the firm said.

Polymershapes is the world’s largest distributor of plastic sheet, rod, tube and film, serving over 35,000 customers with a distribution network of more than 75 branches in the US, Canada, Mexico and Chile.

Blackfriars also owns US semi-finished plastic shapes and parts supplier Laird Plastics, which it bought in 2004.

Although Polymershapes is profitable, owning it is no longer in line with Sabic's plan to strengthen its business by 2025, according to Acting Chief Executive Yousef al-Benyan. He had also told Reuters in May that Sabic was evaluating whether to sell some of its assets in the specialties plastics business, with a decision expected by the end of this year.

Polymershapes roots stretch back to the 1940’s, when two businesses were formed, each focused on selling plastic sheet and fabricated parts. These small enterprises – Cadillac Plastics, based near Detroit, and Commercial Plastics, founded near Philadelphia – grew steadily over the ensuing decades.

In 2000, both companies were purchased by GE Plastics, and became one, taking on the new identity of GE Polymershapes. In 2007, GE Plastics and Polymershapes were acquired by Sabic.

(PRA)