LONDON, UK: Synthomer plc has agreed to acquire the adhesive resins business (Adhesive Technologies) of Eastman Chemical Company for $1 billion in cash.
Eastman Chemical Company’s adhesive resins division develops, manufactures and sells tackifying resins and additives for adhesive products, with a strong focus on attractive end markets such as hygiene, packaging and high-performance tyre additives.
Synthomer Plc is a global differentiated chemicals company listed on the London Stock Exchange with a market capitalization of approximately £2 billion. With strong geographic diversity and product differentiation, Synthomer is a major global business serving a wide range of end-markets including adhesives, coatings, construction, health and protection and textiles.
Adhesive Technologies develops, manufactures and sells tackifying resins and additives for adhesive products, with a strong focus on attractive end markets such as hygiene, packaging and high-performance tyre additives.
Adhesive Technologies has a global presence with a focus on high-value applications and c.83% of sales in North America and EMEA for the year ended 31 December 2020. Adhesive Technologies’ operations consist of 2 business lines: Hydrocarbon Resins (HCR) and Non-Hydrocarbon Resins (Non-HCR).
Synthomer has built up a strong track record of delivering growth both organically and inorganically. The Directors believe that the combination of Synthomer and Adhesive Technologies will allow Synthomer to accelerate its strategy of driving growth and diversification and will enhance Synthomer’s global portfolio providing further exposure to the attractive adhesives end markets.
The Acquisition represents an important step in Synthomer’s inorganic investment strategy, further strengthening its leadership position in growth markets and relationships with its blue-chip customer base.
Commenting on today’s announcement, Caroline Johnstone, Chair of Synthomer, said: “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.
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.
Together with Synthomer’s incoming CEO, Michael Willome, who has been closely involved and who has fully endorsed this transaction, I look forward to welcoming Adhesive Technologies’ colleagues to the Company and working together to deliver on the exciting potential that the combination of our two businesses undoubtedly brings.”
Commenting on today’s announcement, Calum MacLean, Chief Executive of Synthomer, said: “Alongside the diversification of our portfolio, end-markets and geographies, our acquisition strategy looks to add new and highly complementary growth opportunities to Synthomer’s global portfolio.
Adhesive Technologies delivers on that ambition, giving us a leading position in the growing global adhesives market and extending our portfolio of differentiated products and sustainable solutions. The business is well-invested, with six manufacturing facilities, a highly skilled and experienced workforce and has a compelling R&D track record and strong innovation pipeline which will deliver meaningful revenue growth over the next few years.
It is a business that we have long-admired, and I am confident that the combination of Synthomer and Adhesive Technologies will drive meaningful value for all stakeholders in the years ahead.”
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