M&As: Emery Oleochemicals sold to Edenor for US$9 mn; Sherwin-Williams to acquire Sika’s European industrial coatings business

M&As: Emery Oleochemicals sold to Edenor for US$9 mn; Sherwin-Williams to acquire Sika’s European industrial coatings business

Malaysia’s Sime Darby Plantation Bhd (SDP) and Thailand’s PTTGC International have signed an agreement to divest their collective 100% equity interest in the Asia Pacific business of Emery Oleochemicals (M) Sdn Bhd and Emery Specialty Chemicals Sdn Bhd to Edenor Technology Sdn Bhd for around US$9 million.

Emery Oleochemicals, one of the world’s leading natural-based chemical producers, is a 50:50 joint venture between PTT Global Chemical and SDP.

“The divestment is conditional upon the restructuring of Emery Group into separate standalone groups in respect of its Asia Pacific business, and the North America and Europe business,” the plantation company said in a stock exchange filing with Bursa Malaysia. “Post restructuring, Emery Group’s Asia Pacific business will remain under Emery Oleochemicals (EOM) and Emery Specialty Chemicals, while its North America and Europe businesses, both held under Emery Oleochemicals UK Limited, will be transferred out from EOM, to be held directly by SDP and GC Inter on a 50:50 basis.”

Edenor Technology is a 50:50 joint venture company jointly incorporated by Mega First Corporation Bhd (MFCB) and 9M Technologies Sdn Bhd for the purpose of undertaking the proposed acquisition.

In other news, paint/coatings company Sherwin-Williams Company has signed an agreement to acquire the European industrial coatings business of Switzerland-based Sika AG. The transaction is expected to close in the beginning of 2022. Terms were not disclosed.

Based in Germany with additional sales and technical support in Poland, Austria and Switzerland, Sika's European industrial coating business engineers, manufactures and sells corrosion protection coating systems for high value interior and exterior steel infrastructure, bridges, airport and rail, wind and energy, chemicals, power transmission and stations, interior linings for oil and gas tanks, vessels, and pipework, and water and wastewater applications, along with fire protection coating systems to protect and preserve steel, wood and concrete building components.

Sales of the business were approximately CHF 75 million (US$82 million) for the year ended December 31, 2020. The acquired business will become part of the company's Performance Coatings Group operating segment. Approximately 130 Sika employees are expected to join Sherwin-Williams.

"This transaction fits our strategy of acquiring complementary, high-quality, differentiated businesses that add to our profitable growth momentum," said Sherwin-Williams Chairman/President/CEO, John G. Morikis. "The business brings us scale, unique technology, a strong sales and marketing team, technical service capabilities, strategically located manufacturing, and leading specification and approval positions, all of which we can leverage further throughout Europe and other regions across the world. Additionally, synergy opportunities give us great confidence in accelerating the already strong financial performance of the business. We look forward to officially welcoming Sika's industrial coating employees to Sherwin-Williams upon the close of the transaction at the beginning of next year."


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