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Honeywell to buy US phenol/acetone plant from Sunoco for $85mn

US refiner Sunoco said on Wednesday that it has agreed to sell its 1 billion pounds/year phenol and acetone manufacturing facility in Philadelphia for $85mn to Honeywell.

Sunoco will sell both the facility and the estimated value of the product inventory attributable to the facility, it said, with the product inventory to be valued at market prices at closing.

The company is expected to incur second-quarter pretax charges, which are primarily non-cash, of approximately $125-$150mn related to the sale.

The transaction is subject to regulatory approval and customary closing conditions and is expected to be completed in the third quarter.

"The sale of Sunoco's Frankford phenol manufacturing facility is another step in our efforts to unlock value for shareholders by divesting certain non-core assets and focusing on our retail and logistics businesses. These businesses are generating significant value today and represent strong opportunities for future growth," said Lynn L. Elsenhans, Sunoco CEO.

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