Synthomer Plc (London, U.K.) announced the conditional sale of the laminates, films and coated fabrics businesses to Surteco Group for $255 million (£208 million). Surteco is a Germany-based developer, designer, producer and marketer of surface materials based on paper and plastics.
The transaction is a significant and decisive step in Synthomer’s ‘Focus, Strengthen and Grow’ strategy announced in October 2022 as it will increase the specialty chemicals weighting of the business portfolio through the sale of non-core assets which have limited synergies with the rest of the group. The laminates, films and coated fabrics businesses were acquired as part of the acquisition of OMNOVA Solutions Inc. in 2020. Earlier this year, Synthomer acquired the Adhesives Resins business of Eastman Chemical Co.
The laminates business is a provider of functional and decorative surfaces in North America for residential, commercial and transportation end-markets, while coated fabrics are provided for premium applications across South-East Asian OEM automotive and motorcycle and North American commercial, marine and transport seating end-markets. In total, both businesses contributed EBITDA of US$33m (2021) and employ around 800 employees.
The transaction is conditional on certain regulatory approvals and closing conditions, as well as the approval of Synthomer shareholders. A circular containing further details and a notice convening a general meeting to approve the transaction will be sent to Synthomer shareholders in due course. Completion is expected to occur in Q1 2023.
“This divestment is consistent with our recently announced strategy to increase the specialty weighting of our portfolio and focus on higher value, higher growth markets where we have strong and sustainable leadership positions. The proceeds represent excellent value for our shareholders and the transaction is a significant step in the deleveraging of the Group. I would like to thank those colleagues leaving Synthomer and wish them well for the future,” Said Michael Willome Synthomer CEO
By Mary Bailey
Source: chemengonline.com
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