STY Acquisition Corporation, an affiliate of Bain Capital Partners formed to facilitate its purchase of the Styron division of The Dow Chemical Company, today announced the appointment of Christopher D. Pappas as President and Chief Executive Officer of the Company. The appointment of Pappas to lead the Styron business will be effective upon closing of the transaction, which is currently expected to occur during June 2010, subject to regulatory approvals. Pappas, who began his career at Dow, most recently served as Chief Executive Officer of NOVA Chemicals Corporation.
Pappas, age 54, brings to Styron a 30-plus year distinguished career in the chemicals and plastics industry, and is an accomplished leader of large, complex businesses. Prior to his appointment as CEO of NOVA Chemicals, he served in positions of increasing responsibility at NOVA, including President and Chief Operating Officer. He started his career with Dow in 1978, holding a variety of positions until 1995. Pappas joined DuPont Dow Elastomers LLC in 1996 and held several leadership positions there before joining NOVA in 2000.
Pappas will succeed Mark Remmert, who will begin a transition period commencing upon the completion of the sale. Remmert has served as CEO of Dow's Styron division since July 2009.
Dow and Bain Capital Partners, a leading global private equity firm, announced on March 2, 2010 the signing of a definitive agreement for Dow's Styron Division to be divested to an affiliate of Bain Capital and become a standalone, privately held business. Styron will be a leading diversified chemicals and plastics company with approximately $3.5 billion in revenue (based on 2009 data), 40+ manufacturing plants in all geographic regions, attractive global market positions, and a strong technology position in its product portfolio. The transaction includes several long-term supply, service and purchase agreements which will generate substantial value for both Dow and Styron.
"We appreciate the many contributions Mark Remmert has made to Dow over the years, and especially want to recognize his important efforts to lead the Styron Division and help organize a successful divestiture," stated Jim Fitterling, Vice President of Corporate Development at Dow. "And we are pleased to welcome Chris Pappas, an accomplished industry executive with a strong Dow heritage, to this leadership role."
"I am pleased to embark on a long term relationship with Bain Capital and to reconnect with my Dow heritage in this opportunity as CEO of Styron," said Pappas. "The combination of Dow's culture of excellence, strong assets and technology, and outstanding people -- along with Bain Capital's expertise and track record -- will be the foundation for a successful Styron business." Pappas holds a Bachelor of Science degree in Civil Engineering from The Georgia Institute of Technology and an MBA from The Wharton School of Business at The University of Pennsylvania.
"Chris Pappas is an exceptional leader with the right set of skills and experiences to grow and strengthen the Styron business, and help achieve its full potential as a global leader," said Steve Zide, a Managing Director at Bain Capital. "Chris knows the industry and the business well. He will complement the culture of excellence and quality, and will work seamlessly with Styron's business leaders to build the Styron franchise in close partnership with its customers and business partners and Dow."
Styron will have strong global positions in four business areas -- polystyrene and styrenic polymers, emulsion polymers, polycarbonate and engineered compounds, and PBR and SBR synthetic rubbers. Styron products will serve a diverse base of customers and markets including automotive, appliances, packaging, paper & board, carpet, durable goods, electronics, optical media, tires, and technical rubber. Businesses and products in Styron include: Styrenics - Polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene acrylonitrile (SAN) and expandable polystyrene (EPS); Emulsion Polymers (paper and carpet latex); Polycarbonate (PC) and Compounds & Blends; Synthetic Rubber; and Automotive Plastics including PULSE™ engineering resins, MAGNUM™ acrylonitrile butadiene styrene, INSPiRE™ performance polymers, and VELVEX™ reinforced elastomer. Also included will be some styrene monomer assets.
Styron is currently a business division of The Dow Chemical Company, and will be divested to Bain Capital in June 2010.
As a standalone, privately held business, Styron will be a leading diversified chemicals and plastics company with attractive global positions in a related set of markets and a unique product portfolio with a large presence in the styrenics value chain. Styron brings together a balanced portfolio of plastics, rubber and latex businesses that share feedstocks, operations, customers and end users. The company will benefit from a leadership position in its two flagship products, polystyrene and latex, as well as global scale, unrivalled customer relationships, and a robust innovation pipeline.
Styron is expected to have approximately $3.5 billion in revenue (based on 2009 data), with 40+ manufacturing plants in all geographic regions, and approximately 1,900 employees. Its businesses serve a diverse customer base in markets such as automotive, appliances, packaging, paper & board, carpet, durables, electronics, optical media, tires, and technical rubber.
Businesses and products in Styron include: Styrenics - Polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene acrylonitrile (SAN) and expandable polystyrene (EPS); Emulsion Polymers (paper and carpet latex); Polycarbonate (PC) and Compounds & Blends; Synthetic Rubber; and Automotive Plastics including PULSE™ engineering resins, MAGNUM™ acrylonitrile butadiene styrene, INSPiRE™ performance polymers, and VELVEX™ reinforced elastomer. Also included will be some styrene monomer assets.
About the Products in Styron
Polycarbonate (PC) is an engineering thermoplastic used in applications such as consumer electronics, information technology equipment, optical media, signage, electrical and lighting applications. Styrenic plastics (polystyrene, ABS, and SAN) are well known for their performance in an array of applications from packaging and food service, to large appliances, portable appliances, consumer electronics, automotive and building and construction. Synthetic rubber is used in a broad portfolio of products from tires to hoses, conveyor belts, and footwear to specialized high performance elastomers. Expandable polystyrene (EPS) is typically used in rigid foam products such as heat insulation, packaging, impact sound insulation and drainage. SB and SA Latex are used in the paper/paperboard and flooring applications. Automotive plastics are used in many different automotive applications, such as instrument panels, mid consoles, door panels, interior trim, seat structures and bumpers.