Blackstone and Celanese to Form Joint Venture
06.19.17
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The Firm is representing affiliates of certain private equity funds of The Blackstone Group L.P. in connection with its entry into an agreement to form a joint venture with Celanese Corporation (“Celanese”) to create a global acetate tow supplier. Under the terms of the agreement, Celanese will contribute its Cellulose Derivatives business unit, including its equity interest in existing joint ventures with China National Tobacco Corporation, and Blackstone will contribute its Rhodia Acetow business unit, which it recently acquired from Solvay. Celanese and Blackstone will own 70% and 30% of the joint venture, respectively. The joint venture is expected to generate 2017 annual pro forma revenue of approximately $1.3 billion with around 2,400 employees. The joint venture will have an extended global footprint that includes eight wholly owned manufacturing facilities and three existing JV sites.
The formation of the joint venture and consummation of the transaction is contingent on customary closing conditions, including necessary regulatory approvals.
The Simpson Thacher team includes Michael Wolfson, Lauren Colasacco, Jihyun Chung and Willimina Bromer (M&A); Brian Gluck, Homin Lee and Adam Moss (Credit); Ed Tolley and Jonathan Ozner (Capital Markets); Gary Mandel, Meredith Jones and Joseph Tootle (Tax); Larry Moss (Executive Compensation and Employee Benefits); and David Vann, John Osborne, Étienne Renaudeau and John Skinner (Competition). Summer Associate Alexander Hoffman also provided valuable assistance.