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Celanese (NYSE:CE) and Mitsui & Co. will form a food ingredient joint venture under the name Nutrinova.
Celanese will retain 30% and contribute the assets, technology, and employees of its food ingredients business, and Mitsui will acquire the remaining 70% stake at a purchase price of $472.5M, representing an enterprise valuation of ~15 times 2022 EBITDA.
The formation of the Nutrinova JV allows Celanese to monetize a majority of that business in a value accretive way and also maintain the benefits of integration with the Acetyl Chain.
After consideration of closing expenses and transaction costs, an estimated net cash proceeds of ~$450M will be fully utilised to pay down debt, which is a meaningful step in the company’s deleveraging plan.
Transaction closing is expected in H2 2023.