Exxon Explores Sale of Elastic Polymer Enterprise: Sources | Investing News

By Joshua Franklin and Greg Roumeliotis

(Reuters) – Exxon Mobil Corp is discovering a sale of its Sophisticated Elastomer Programs (AES) division, potentially valuing the elastic polymer maker at around $800 million which include debt, in accordance to men and women acquainted with the make a difference.

The deal would let the oil important to nibble at its personal debt pile, which totaled $45.5 billion at the stop of December. Its shares are up about 37% calendar year-to-date on trader anticipations that the company will profit from a restoration in power prices.

Exxon has hired investment decision lender Morgan Stanley to solicit interest in AES from prospective prospective buyers, like non-public equity firms, the resources claimed.

The sources cautioned that no offer is certain and asked for anonymity because the make a difference is private. Exxon and Morgan Stanley declined to comment.

Exxon incurred a historic loss of $22.4 billion past calendar year. It is striving to convince a skeptical Wall Road that it can rebound immediately after yrs of overspending left it deeply indebted and lagging rivals superior geared for a planet demanding cleaner fuels.

AES is acknowledged for its Santoprene thermoplastic vulcanizates (TPVs), which are elastic polymers utilised in automotive, industrial and customer solutions. The company was launched in 1991 as a limited partnership amongst ExxonMobil Chemical and Solutia. Exxon became the sole proprietor of AES in 2002.

The global TPV market is seen growing from $1.6 billion in 2019 and to $2.6 billion in 2027, however the industry has been adversely impacted by the COVID-19 pandemic thanks to factory shutdowns and source chain troubles, according to a report by ResearchAndMarkets.com.

(Reporting by Joshua Franklin in Boston and Greg Roumeliotis in New York Extra reporting by Jennifer Hiller in Houston Modifying by Matthew Lewis)

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