Sunoco will sell its subsidiary Sunoco Chemicals, Inc., comprised of its polypropylene business, to Braskem S.A., one of the largest producers of petrochemicals and thermoplastic resins in the Americas, for approximately $350 million in cash. The sale will include assets and inventory attributable to the polypropylene business, subject to a market-based working capital adjustment at the time of closing. The transaction is subject to regulatory approval and customary closing conditions and is expected to close on or before March 31.
Chairman and CEO Lynn Elsenhans said, "The sale of our polypropylene business demonstrates the company's continued progress in realigning our portfolio of assets and improving returns on invested capital. This transaction produces value for our shareholders by monetizing a business that has not been able to meet its cost of capital and provides us with capital to redeploy for future growth in our areas of strategic focus. Sunoco is grateful to the talented and dedicated employees who made the business an important part of the company for many years. We wish them well as they prepare to join Braskem."
Included in the sale are Sunoco's polypropylene manufacturing facilities in Marcus Hook, PA; La Porte, TX; and Neal, WV, which have the combined capacity to produce approximately 2.1 billion pounds of polypropylene annually. The sale also includes Sunoco's Research and Technology Center located in Pittsburgh, PA.
Sunoco will retain its phenol and derivatives business, which has manufacturing assets located in Philadelphia, PA and Haverhill, OH.