M&As: Synthomer to sell laminates films/coating biz to Surteco; Shenyang Chemical/Sinochem Quanzhou in jv to build polyols unit

UK’s Synthomer, a supplier of acrylic and vinyl emulsions polymers, is to sell laminates, films and coated fabrics businesses to Surteco North America, for a total enterprise value of around US$255 million.

The net proceeds from the deal would be approximately US$245 million and will be used to repay certain indebtedness in order to strengthen the balance sheet.

Synthomer said the planned sale is in line with its strategy as set out at the Capital Markets Day in October to increase the specialty weighting of its portfolio through the sale of identified non-core assets.

The transaction is expected to complete in the first quarter, and will be conditional on certain regulatory approvals, customary closing conditions and certain other conditions.

Michael Willome, CEO, said, "This divestment is consistent with our recently announced strategy to increase the specialty weighting of our portfolio and focus on higher value, higher growth markets where we have strong and sustainable leadership positions."

Meanwhile in other news, Chinas Shenyang Chemical Industry has agreed to form a joint venture with Sinochem Quanzhou Petrochemical to build a polyether polyol facility in China.

Shenyang will invest 211.6 million yuan for a 51% stake in the joint venture to be called Sinochem Bluestar Dongda (Quanzhou), while Sinochem Quanzhou will inject 203.3 million yuan for a 49% stake. The companies intend to build a plant with capacity for 240,000 tonnes/year of polyether polyols.

The factory will require an investment of 1.1 billion yuan. The agreement constitutes a connected transaction as Sinochem Quanzhou is a subsidiary of Sinochem Holdings, which also controls Shenyang's controlling shareholder China National Bluestar (Group).

Sinochem Holdings was formed from the merger of Sinochem Group and ChemChina in 2021.

(PRA)

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