ExxonMobil Chemical Co. signed an agreement with Dallas-based Celanese Corp. on June 30 for the sale of its global Santoprene™ business for $1.15 billion.

The multibillion-dollar sale advances Exxon Mobil’s strategic business objectives, according to a release from the oil major headquartered in Irving, Texas.

“Reaching this agreement with Celanese is consistent with our strategy and allows us to focus on serving the growing market for primary olefin derivatives, where we can leverage our competitive advantages of industry leading scale, integration and proprietary technology,” commented Jack Williams, senior vice president of Exxon Mobil Corp., in the company release on June 30.

Exxon Mobil’s Santoprene business is a global producer of thermoplastic vulcanizates, part of the elastomer family, serving a variety of end-uses including automotive, construction, appliance, medical and industrial.

The sale includes two world-scale manufacturing sites in Pensacola, Florida and Newport, Wales, the release said. Additionally, the release added that the Exxon Mobil employees impacted by the sale are expected to transfer to positions at Celanese following change-in-control.

In a separate release, Celanese said it will acquire the “industry-renowned Santoprene brand” on a cash-free, debt-free basis. The company is planning to finance the acquisition with excess cash and available liquidity on the Celanese balance sheet.

The companies expect to close the transaction in the fourth quarter. Morgan Stanley & Co. LLC served as financial adviser to ExxonMobil Chemical Co. for the transaction. Celanese is advised by Kirkland & Ellis LLP as principal legal counsel and Goldman Sachs & Co. LLC as financial adviser.

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