Synthomer sells latex compounding business for EUR27 mn

Synthomer sells latex compounding business for EUR27 mnUK’s Synthomer Plc has announced an agreement to divest its latex compounding operations (the compounds business) to Belgian company Matco NV, a leader in compounds, water-based adhesives, and solutions for various industrial applications, for consideration of EUR27.5 million.

The compounds business, which is part of Synthomer’s Health & Protection and Performance Materials division, was designated as non-core to the group as part of the strategy update announced in October 2022. It produces certain latex-based compounds and curing additives used in the manufacture of products for a range of end markets including flooring and artificial grass. The business comprises two manufacturing sites in the Netherlands and one in Egypt.

In the year ended 31 December 2023, the compounds business generated stand-alone adjusted EBITDA of EUR4.8 million and had gross assets at the end of the period of EUR56 million. The transaction, which is conditional on certain customary closing conditions, is expected to complete over the next month with consideration payable on completion. The proceeds of the divestment will be used to reduce group net debt.

Commenting, Synthomer CEO Michael Willome said: “This divestment is consistent with our strategy to increase the specialty weighting of the group, reduce the complexity of our site portfolio and enhance our focus on higher value, higher growth markets where we have strong and sustainable leadership positions. I would like to thank those colleagues leaving Synthomer and wish them well for the future.”