Synthomer said today that it had entered into a definitive agreement to acquire Omnova Solutions for an enterprise value of £654 million ($824 million), including $473 million in shares and $351 million of debt. The transaction has been approved unanimously by the Omnova and Synthomer boards.
Synthomer is offering Omnova $10.15/share, a premium of 58% to Omnova’s closing price on Tuesday, and it is targeting annualized pre-tax cost savings of $29.6 million by the end of the third year after the deal is completed. Completion is subject to closing conditions, including the receipt of regulatory approvals, and approval from Synthomer’s and Omnova’s shareholders. The transaction is not contingent on obtaining financing and it is expected to close in late 2019 or early 2020.
Omnova reported sales of $769.8 million last year. It operates two business segments, specialty solutions and performance materials, with 63% of sales last year derived from the specialty solutions segment and 37% from the performance materials unit.
Synthomer is a top-five worldwide supplier of emulsion and specialty polymers, producing formulations for industries ranging from construction through paints and coatings and healthcare. The group has approximately 2,900 employees and had revenue of £1.6 billion last year.
By Natasha Alperowicz
Source: Chemical Week
We are closing the chapter of the Chemicals Import Export Headquarters, and opening a new chapter under the name of Qemetica – a chemical group driving many industries on all continents. Therefore, the change of name is also accompanied by the adoption of the key goals of the business strategy for the next 6 years. – says Kamil Majczak, President of the Management Board.
In its efforts to advance chemical recycling, Neste has successfully conducted its first processing trial run with a new challenging raw material, liquefied discarded tires. In the processing run, Neste produced high-quality raw material for new plastics and chemicals.
Sika is opening a state-of-the-art facility in Lima, Peru, to produce synthetic macro fibers, and expanding the rollout of a product range with great growth potential in Latin America. With this innovative technology, Sika is further strengthening its position as a leading supplier to the mining industry and a strong partner for infrastructure projects.