Electric Signs

GE to Sell Plastics Unit in $11.6 Billion Deal

Riyadh-based chemical company buys unit that was put on sale in January.

Published

18 years ago

May 21, 2007

Jacob Rieskamp Signs of the Times May 2007 Issue

Riyadh-based Saudi Basic Industries Corp., the world's largest chemical company by market value, will buy General Electric Co.'s plastics unit for roughly $11.6 billion, according to bloomberg.com.

The adcquisition is the largest ever in the Persian Gulf, and the price is above the $8 billion to $10 billion estimated by some investors.

Saudi Basic, known as Sabic, has doubled sales since 2002 because of the Riyadh, Saudi Arabia-based company's access to the world's largest oil reserves, used as raw material for plastics and petrochemicals. GE put its plastics unit up for sale in January after the soaring cost of crude cut into earnings.

GE Plastics, based in Pittsfield, MA, last year posted a $74 million profit on sales of $6.65 billion. Buying the division will give Sabic a foothold in polycarbonates. GE's proprietary Lexan plastic is used in roofs, lighting, walkways, windows, domes and signages.

GE Plastics was created in 1930 from experiments with plastic filaments for lightbulbs conducted by Edison in 1893.

Mars Bravo: The Most Interesting Name in the Sign Industry

Mars Bravo is not the kind of name you hear very often in the sign industry — the kind of name more likely to follow, “Ladies and gentlemen, please welcome to the stage…!” In this episode, Eric interviews Mars to find out about her start in the sign industry and her ideas for the future, first with how she got her name.