Arkema announced today that it has agreed to acquire the sealants producer Den Braven from the Dutch private equity firm Egeria in a deal valued at €485 million ($533 million).
The price equals 11x 2016 Ebitda estimate and Arkema envisages annualized synergies of €30 million to be achieved within five years. The acquisition is subject to consultations with Arkema BV’s works council and antitrust approvals. Closing is expected in the last quarter of 2016.
Den Braven, a leading player in high performance sealants in Europe with estimated sales of €350 million this year, will reinforce Bostik, Arkema’s existing adhesives & sealants business. The deal is in line with Arkema’s plans for bolt-on acquisitions in selected areas, including adhesives.
Den Braven employs about 1,000 people and operates eight plants, including two each in Germany and Netherlands as well as plants in France, Romania, Turkey and in the United States. Den Braven offers an extensive range of sealing, bonding and foam solutions for construction professionals as well as industry and reinforces Bostik’s offering in the insulation and construction markets. The geographic and technological fit will help create a global leader in the high performance sealants market, which is growing at 3-4%/year, Arkema says.
Bostik although a leading player has a share of only about 3-4% of the global adhesives & sealants market, which is very fragmented. Globally, the market is estimated at about €50 billion/year of which sealants account for €9 billion/year. The acquisition is in line with Arkema’s plan to increase the share of its high performance materials (HPM) segment, which should account for 50% of group sales by 2020. In addition to Bostik, HPM includes technical polymers, filtration and adsorption and organic peroxides.
By Natasha Alperowicz
Source: Chemical Week
The investment enables the steam cracker to increase the share of renewable and recycled raw materials used in its (ethylene and propylene) production. The move supports the Borealis Strategy 2030 for a circular economy. The Porvoo investment program is expected to be completed in 2025.
Murray Auchincloss, bp’s CEO, said in a statement: “As I set out in February, BP’s destination from IOC [international oil company] to IEC [integrated energy company] is unchanged – and we need to deliver as a simpler, more focused, and higher-value company.
Founded in 1972, Tecnofilm has expanded its product portfolio over the years to offer a wider range of compounds and functional polymers for various industrial applications and technical articles. The company has patented several of its products.
