10th Feb 2017 07:20
LONDON (Alliance News) - Specialty chemicals company Elementis PLC on Friday said it has agreed to acquire US personal care chemicals company SummitReheis for USD360.0 million.
Elementis is acquiring the company from an affiliate of US investment firm One Rock Capital Partners LLC for USD360.0 million in cash. It expects the deal to be accretive to earnings in 2017 and to provide double-digit earnings accretion in 2018.
SummitReheis makes a range of active ingredients and materials for personal care, pharmaceutical and dental products. It will increase the personal care revenue generated by Elementis to around USD200.0 million, in addition to providing cross-selling opportunities and broadening its geographic presence.
Elementis added it will give it a stronger presence in the anti-perspirant market.
Elementis also said on Friday that its results for 2016 will meet market expectations and that the acquisition will have no impact on any special dividends it will pay for the year. It will publish annual results on March 1.
"The group is well positioned to capitalise on this acquisition through the enhanced geographic footprint and strong customer relationships that it brings. Together with our existing business, the acquisition of SummitReheis is transformative for our personal care business, creating a substantial, high return platform that will help accelerate our Reignite Growth strategy," said Chief Executive Paul Waterman.
By Sam Unsted; [email protected]; @SamUAtAlliance
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