Trinseo to Acquire API Applicazioni Plastiche Industriali S.p.A.

Soft-touch polymers will broaden product portfolio and drive growth
in Performance Plastics

BERWYN, Pa. & MUSSOLENTE, Italy–(BUSINESS WIRE)–$TSE—Trinseo
(NYSE:TSE), a global materials solutions provider and manufacturer of
plastics, latex binders and synthetic rubber, and API Applicazioni
Plastiche Industriali S.p.A. have signed a definitive agreement for
Trinseo to acquire API.

The transaction is expected to close in the third quarter of 2017,
following customary closing conditions. Trinseo is funding the purchase
of API’s shares through its existing cash on hand.

“Trinseo’s first acquisition is directly aligned with the company
strategy to grow the Performance Materials businesses and will benefit
customers across a breadth of market applications and geographies,” said
Chris Pappas, President and CEO of Trinseo. “API is a sophisticated
polymer solutions provider with a strong position in soft-touch polymers
– which complement Trinseo’s strengths in rigid polymers. By leveraging
API’s advanced manufacturing operations, excellent management, deep
technical expertise, and strong customer relationships, we will further
strengthen our Performance Plastics businesses to create growth
synergies with customers in all global regions.”

The transaction includes API’s manufacturing and research facility at
Mussolente, Italy, and all of API’s business, employees and assets. The
API management team and employees will join Trinseo’s Performance
Plastics business. The Brunetti family will support and facilitate a
smooth transition of API to Trinseo.

“After 60 years of successful history, API today celebrates an important
milestone,” said Lorenzo Brunetti, Vice President, son of Sergio
Brunetti, the founder of API. “We see this transaction with Trinseo as
the natural evolution of our long-standing experience, reputation, and
flexibility in thermoplastic elastomers (TPE), now combining with the
energy, stability and global presence of Trinseo. The excellent
combination of the product portfolios will boost our customers’
achievements and success through highly specialized solution offerings.
The Brunetti family sees this operation as a fantastic example of how
the cooperation between a forward-thinking player like Trinseo and an
Italian enterprise can lead to absolute excellence and leadership on the
global market. We see a bright and successful future for the people we
care for the most: our dedicated and talented employees.”

Complementary Products, Cross-selling Opportunities

Customers of API and Trinseo can expect the combined Performance
Plastics business to serve their applications needs with a broader
product offering of soft-touch and rigid polymers, as well as new
technology from API and the addition of strong talent with deep
application knowledge.

“API’s products are distinct from Trinseo’s and are complementary,” said
Hayati Yarkadas, Senior Vice President and Business President,
Performance Materials. “Trinseo’s rigid plastics have a very strong
position in Automotive, Medical and Consumer markets. API’s soft-touch
thermoplastic elastomer (TPE) products are often used together with
rigid plastics in similar applications, so the combination of Trinseo
and API will benefit customers. The potential for the combined product
offering, as well Trinseo’s global presence to bring API products into
new geographies, means that this powerhouse portfolio of Performance
Plastics will be an engine for growth in Trinseo.”

• API Products: soft-touch polymers
  including TPEs, Thermoplastic Polyurethanes (TPUs), EVA-based
  Compounds, and Two-Components PU, as well as a portfolio of bioplastics
• API Key Market Applications: Automotive,
  Footwear, Appliances, Furniture, Sporting Goods, Apparel, Consumer
  Goods, Packaging, Construction, and Medical
• Trinseo Products: ABS, Polycarbonate,
  Polypropylene, Polystyrene, SAN, polymer compounds, Synthetic Rubber
  (S-SBR, E-SBR, Li-BR, Ni-BR, Nd-BR), Latex Binders
• Trinseo Key Market Applications:
  Automotive, Consumer Electronics, Lighting, Appliances, Packaging,
  Medical Devices, Tires, Consumer Goods, and Construction

Bringing together the unique strengths of Trinseo and API, the combined
Performance Plastics businesses will be well positioned to grow and
capture new business opportunities on a global scale. With a broader
portfolio of both rigid polymers and soft-touch polymers, the combined
business will be ready to meet an even broader array of application
needs. Customers also will benefit from new technology and the addition
of strong talent from API with their deep application knowledge.

“This is the major step I was looking for since when, nearly ten years
ago, we started to prepare API for a new strategy of profitable growth
on the international stage,” said Sandro Gusi, General Manager of API.
“Our company has an incredibly deep product knowledge and experience,
but still our real potential is yet to be exploited. I see a perfect fit
with Trinseo as the true key to fully release our resources, with great
benefits for both our precious API people, as well as our extremely
valuable customers. I’m personally very excited and totally engaged in
shaping this new future together.”

About API

API is an Italian company specialized in the production of thermoplastic
elastomeric compounds and bioplastics. Founded in 1956, API has
developed a deep and proven experience based on continuous research into
innovative, customized compounds for a wide range of applications. For
more information visit www.APIplastic.com

About Trinseo

Trinseo (NYSE:TSE) is a global materials solutions provider and
manufacturer of plastics, latex binders, and synthetic rubber. We are
focused on delivering innovative and sustainable solutions to help our
customers create products that touch lives every day — products that are
intrinsic to how we live our lives — across a wide range of end-markets,
including automotive, consumer electronics, appliances, medical devices,
lighting, electrical, carpet, paper and board, building and
construction, and tires. Trinseo had approximately $3.7 billion in net
sales in 2016, with 15 manufacturing sites around the world, and nearly
2,200 employees. For more information visit www.trinseo.com.

Forward Looking Statements

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revenues, business activity, acquisitions, financings and other matters
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that may cause results, levels of activity, performance or achievements
to differ materially from results expressed or implied by this press
release. As a result of the foregoing considerations, you are cautioned
not to place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company undertakes
no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.

Contacts

Press:
Trinseo
Donna St. Germain, +1 610-240-3307
stgermain@trinseo.com
or
Investors:
Trinseo
David
Stasse, +1 610-240-3207
dstasse@trinseo.com