Synthomer acquires Hexion PAC business in US for $226m
Synthomer has acquired the Hexion Performance Adhesives & Coatings (Hexion PAC) business of US-based Hexion in a transaction valued at $226m.
Following the acquisition, Synthomer will get access to new product technologies and markets.
Hexion PAC is complementary to the company's existing business, both geographically as well as in the markets in which it operates.
The acquisition will enable Synthomer to venture into the speciality coatings market.
Integration of the Hexion PAC business will offer around $12m of annualised synergies to the company by the end of 2018.
Synthomer CEO Calum MacLean 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."
The acquisition, which is planned to be funded by Synthomer from its existing cash resources and using additional credit facilities, is subject to the receipt of regulatory approvals and is slated for completion in the second quarter of 2016.
Hexion PAC develops, manufactures and markets a range of dispersions, additives, powder coatings and speciality monomers.
Separately, Synthomer has agreed to sell its South African dispersions business to colours and coatings manufacturer Ferro for £13m.
The sale is expected to be completed in the second quarter of this year, after securing regulatory approvals.