M&As: Röhm to acquire Sabic’s Lexan PC films/sheet business; Asahi Kasei participates in investment in Circularise

German PMMA specialist Röhm, which was bought by private equity firm Advent International from Evonik in 2019, has agreed to acquire the Functional Forms business of Sabic (Riyadh, Saudi Arabia), subject to customary consultation with the respective works councils and approval of the antitrust authorities, with the transaction expected to close in the first half of 2024. Röhm will add polycarbonate (PC) sheets and films to its existing range of PMMA sheets and films, further expanding its position for its customers across a wide range of applications. Terms were not disclosed.

“We are very excited to have found a strong partner with whom we can grow together,” explains Röhm’s CEO Michael Pack. “By adding the Polycarbonate Resin extrusion business to our portfolio, we will sustainably strengthen our competitiveness in our sheets and films business. With the combined competencies – in sales and in the development of materials, products and applications – we will become a better business partner for our customers.”

Ronald Ayles, Managing Partner at Advent International, adds: “This is a unique opportunity for Röhm to build a global leader in this attractive segment and we are very happy to be able to back our portfolio company in executing this transformative acquisition”.

Sabic’s Functional Forms business offers a broad portfolio of polycarbonate film and sheet products, predominantly marketed through the strong Lexan brand which is globally recognised as one of the leading brands in its segment. Functional Forms has an extensive global presence with about 700 employees, operations in 19 countries and through various production sites strategically located across all continents.

With a merged portfolio worth more than EUR700 million in sales, the new combined company will have a strong operational global footprint across 14 production sites, and benefit from complementary activities in similar but distinct fields, Röhm said. Both, Röhm and Sabic’s Functional Forms business, manufacture high-quality sheet and film products that are used across a wide variety of industries, ranging from building and construction, consumer electronics, medicine to aviation. The acquisition is a key cornerstone of Röhm’s strategy to develop its transparent semi-finished products business into a leading global multi-polymer company.

In other news, Japanese chemical firm Asahi Kasei has decided to invest in Circularise B.V., a start-up company in the Netherlands that provides digital product passports and mass balance bookkeeping software, together with Brightlands Venture Partners, 4impact capital, and Neste.

Circularise is a start-up company founded in 2016 aiming to accelerate the shift towards a circular economy through supply chain traceability and transparency. Circularise has developed a highly reliable supply chain management system that achieves both data anonymity and transparency using blockchain technology.

By doing so, various information on raw materials, recycling history, biomass and recycling content, carbon footprint, third-party certification, etc. can be traced through the supply chain while maintaining the confidentiality of each stakeholder's information. The Asahi Kasei Group expects to contribute to a carbon neutral and sustainable world by joining the establishment of a digital platform ensuring reliability and transparency in the supply chain through its investment in Circularise, in accordance with its medium-term management plan focused on the theme “Be a Trailblazer.”

(PRA)

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