28th Oct 2021 11:03
(Alliance News) - Synthomer PLC on Thursday announced the purchase of the adhesive resins business of Tennesee, US-based Eastman Chemical Co for USD1 billion in cash.
Shares in the FTSE 250 constituent were up 3.5% at 490.40 pence each in London on Thursday morning following the announcement.
To help pay for it, Synthomer set out plans to raise GBP200 million from a share placing, with 21% shareholder Kuala Lumpur Kepong pledging to take part in line with its existing holding. The placing will be priced in a bookbuild run by Barclays and Numis.
The Essex-based chemicals company will pay the remainder of the price tag from a new USD300 million debt facility and existing cash. Synthomer said the acquisition is expected to deliver double-digit earnings per share accretion in the first year.
"This acquisition is another important strategic step for Synthomer. It builds on the significant portfolio and geographic expansion gained from acquiring Omnova last year and adds an exciting new platform for growth," commented Chair Caroline Johnstone.
"Adhesive Technologies' global positioning, market leading technology with a strong focus on attractive end markets such as hygiene, packaging and high performance tyre additives are highly complementary to our existing business."
By Will Paige; [email protected]
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