Synthomer acquires Perstorp Belgium

UK-headquartered chemicals firm Synthomer has acquired Perstorp Oxo Belgium AB Perstorp Group, a speciality chemicals innovator and supplier based in Sweden.

Synthomer will pay an enterprise value of EUR78 million which will be fully funded from existing financial resources. The acquisition, which completed on 5 March, represents a multiple of 8.5x 2016 Adjusted EBITDA(1). This is expected to fall to approximately 7.0x EBITDA post integration reflecting operational efficiencies and increased volumes to existing customers. Perstorp Belgium will be consolidated into Synthomer’s results from March 2017.

In the year to 31 December 2016, Perstorp Belgium generated reported earnings before interest and tax of EUR8 million. At 31 December 2016, Perstorp Belgium had gross assets of EUR21 million.

Perstorp Belgium is a niche performance additives business serving the decorative and industrial coatings industries. It has strong market leadership positions (#1 or #2) and serves a highly attractive, blue-chip customer base. The business operates from a well located, single site in Ghent, Belgium where there is potential for growth capacity for future demand.

Perstorp Belgium is highly complementary to Synthomer’s existing markets and customers. The Group will focus on expanding Perstorp Belgium’s market position by developing closer relationships with customers through leveraging its existing sales and technical services infrastructure, and driving operational performance.

Calum MacLean, Chief Executive Officer of Synthomer, commented: "The acquisition of Perstorp Belgium represents another step forward in our strategy to continue to grow and develop Synthomer. The business is an excellent fit and provides increased access to new products and customers. We look forward to welcoming our new colleagues and integrating the business with Synthomer through the remainder of this year.”

Last year, Synthomer acquired Hexion Performance Adhesives & Coatings, a business of US-based Hexion. It 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.