Celanese, Blackstone to form acetate tow joint venture

|About: The Blackstone Group L.P. (BX)|By:, SA News Editor

Celanese (NYSE:CE) and Blackstone (NYSE:BX) announce an agreement to combine their cellulose acetate tow units to form a bigger supplier of the material; CE will own 70% and BX 30% of the joint venture.

The deal combines CE's cellulose derivatives unit with BX's Rhodia Acetow business, bought from Belgium's Solvay in December.

The JV is expected to generate 2017 annual pro forma revenue of ~$1.3B.

CE says it will receive $1.6B in cash on completion of the deal, which it expects to be accretive to earnings after the first year.