ORANGE, Texas —Bridgestone Corp. has agreed to sell a styrene-butadiene copolymer plant in Orange operated by its Firestone Polymers L.L.C. subsidiary to synthetic rubber producer Lion Elastomers L.L.C.
Once completed, the deal will put the Bridgestone Corp. subsidiary out of the non-tire synthetic rubber supply business. Bridgestone will, however, continue to operate an SBR plant in Lake Charles, La., along with a pilot plant in Akron.
Financial terms were not disclosed.
The Firestone plant produces SBR compounds under the Stereon, Diene and Duradene trade names. Lion said these products are complementary to its portfolio.
This is Lion's second strategic acquisition in less than five years, and is in line with the firm's initiative to expand its business and provide greater value enhancement to its customers.
"We have had a strong professional relationship with Bridgestone for decades, and we are looking forward to maintaining this relationship while we continue to support the customers of the Orange facility," Lion CEO and President Jesse Zeringue said.
"This asset purchase will provide our company with the opportunity to further diversify our business and add additional product offerings to current and new customers."
Lion produces EPDM and SBR under the Royalene brand name at plants in Geismar, La., and Port Neches, Texas.
In June 2017, Lion — then known as Lion Copolymer Services L.L.C. — purchased assets of SBR and nitrile-butadiene producer East West Copolymer L.L.C., which had declared bankruptcy in April 2017.
In 2014, it bought Ashland Inc.'s SBR business in Port Neches to replace capacity it had idled in 2013 in 2012. Lion Copolymer was created in 2005 when private-equity firm Lion Chemical Capital L.L.C. bought DSM Copolymer Inc.´s SBR business.