PARIS, FRANCE: Arkema, a global leader in specialty materials, has announced that it has signed an agreement to acquire Glenwood Private Equity’s 54% stake in the listed South Korean company PI Advanced Materials (PIAM), for €728m enterprise value.

The transaction, which is expected to close in the first half of 2022, will enable Arkema to fully consolidate PIAM in its accounts and to strengthen its position in the fast-growing markets of consumer electronics and electric vehicles.

PIAM is the global leader in polyimide films, a high-performance polymer that offers exceptional properties such as heat resistance, electrical insulation, mechanical strength and flexibility.

With sales of over €200m and an EBITDA margin of around 30%, PIAM has a best-in-class manufacturing base and a strong innovation capability.

PIAM’s sales are expected to grow at 13% p.a., driven by unique opportunities for polyimide in increasingly demanding applications such as lithium-ion batteries, 5G antennas, high resolution OLED displays or flexible screens.

The acquisition of PIAM is a rare opportunity for Arkema to broaden its polymer range with an ultra-high performance and cutting-edge technology, complementing its existing portfolio of specialty materials.

The transaction will also create significant synergies, estimated at €30 million, mainly from cross-selling, operational excellence and R&D collaboration.

The valuation of the deal represents c.20x the average 2021/2022 EBITDA, and targets 8x 2027 estimated EBITDA, post synergies.

The transaction is fully financed in cash by Arkema, maintaining a strong balance sheet with a net debt on EBITDA ratio within its financial leverage objective of 2x.

The acquisition is subject to customary closing conditions, including regulatory approvals and the approval of PIAM’s minority shareholders.

“This acquisition is fully aligned with our strategy to be at the forefront of high performance materials for high growth end markets supported by megatrends such as electric vehicles and advanced electronics.

After the divestment of PMMA, the acquisition of Ashland adhesives and the current start-up of our bio PA11 plant in Singapore, Arkema is delivering another significant milestone of its strategy focused on innovative materials for a sustainable world,” stated Thierry Le Hénaff, Arkema’s Chairman and Chief Executive Officer.

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