21st Mar 2016 07:10
LONDON (Alliance News) - Specialty chemicals company Synthomer PLC on Monday said it has struck a deal to acquire US-based chemicals company Hexion Performance Adhesives & Coatings and has sold a business in South Africa.
Synthomer will pay USD226.0 million in cash to acquire Hexion, which manufacturers a range of dispersions, additives, powder coatings and speciality monomers, with a focus on a range of industries, including the building and construction market.
The acquisition will boost Synthomer's position in the adhesives and coatings market, adding new products to its offering, plus a new customer base. It expects to deliver annual savings of USD12.0 million by the end of 2018 from the deal.
"The acquisition of HEXION PAC represents a further step forward in our strategy to continue to grow and develop the business. This acquisition strengthens our platform for continued growth in the global dispersions and additives market, and in particular expands our presence in the US and Asia," said Synthomer Chief Executive Calum MacLean.
Separately, Synthomer said on Monday it has sold its dispersions unit in South Africa to Ferro SA for GBP13.0 million. It said it disposed of the business due to declining earnings and cash flow performance of the unit within a competitive market, a requirement for further investments in the assets and an increasingly challenging market backdrop.
By Sam Unsted; [email protected]; @SamUAtAlliance
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