UK polymer company Synthomer says that it has completed its acquisition of Omnova Solutions Inc, a US-based specialty chemical company that manufactures emulsion polymers, speciality chemicals and decorative products. Synthomer had made an offer to buy Omnova for an enterprise value of US$824 million in a bid to strengthen its global position last year.
The transaction, it says, creates a global speciality chemicals company with significant scale and a strong platform from which to invest in future growth. Synthomer becomes a major world-wide player in water-based polymer solutions with greater customer reach and strong operational capabilities and will be in a stronger position to invest in growth, innovation, and people.
As well, the acquisition materially strengthens Synthomer’s presence in North America, and increases its presence in Europe and Asia, including further penetration into the high growth Chinese market. Synthomer says it intends to utilise best practices from across the enlarged Group to improve productivity and service.
The acquisition is expected to result in estimated recurring run-rate pre-tax cost synergies of US$29.6 million per annum by the end of the third year following completion.
The acquisition is expected to be earnings accretive in the first full financial year following completion and strongly accretive thereafter. Omnova will be integrated into Synthomer accounts with immediate effect.
Commenting, Calum MacLean, CEO of Synthomer said: “I am very grateful to everyone who has helped us complete our acquisition of Omnova in a relatively short time frame following the initial announcement of the transaction at the start of July. Synthomer now has global reach, a broader product portfolio and increased R&D capabilities with an exciting platform from which to attract talent and invest in future growth. We have already made strong progress to bring our businesses and I look forward to working closely with new colleagues around the world to take Synthomer forward.”