Synthomer plc, a leading speciality chemicals company, announces the acquisition of Hexion Performance Adhesives & Coatings, a business of Hexion Inc., a global chemical company based in Columbus, Ohio in the USA. The total consideration is US$226 million which is being funded from both existing cash resources and utilisation of additional credit facilities. The acquisition is expected to complete during the summer 2016 following receipt of regulatory approvals and satisfaction of other closing conditions.
Hexion PAC develops, manufactures and markets a wide array of dispersions, additives, powder coatings and speciality monomers, supplying a global customer base across a broad range of end-use including coatings, adhesives and for building and construction applications. The existing leadership team of Hexion PAC will transfer with the business to Synthomer.
The purchase price represents a pre-synergy multiple of 7.5x and a post-synergy multiple of 5.4x and the Group’s pro-forma leverage will increase to approximately 1.5x based on the Group’s 2015 year-end numbers.
Calum MacLean, Chief Executive Of?cer of Synthomer, said:
“The acquisition of HEXION PAC represents a further step forward in our strategy to continue to grow and develop the business. This acquisition strengthens our platform for continued growth in the global dispersions and additives market, and in particular expands our presence in the US and Asia. HEXION PAC has a good performance track record and shares our commitment to innovation and emphasis on strong customer relationships. We look forward to welcoming our new colleagues and integrating the business with Synthomer through the remainder of this year.”