Arkema recently announced that it has signed an agreement for the acquisition of Ashland’s Performance Adhesives business. The offer was reportedly made on the basis of a $1.65 billion enterprise value. According to Arkema, the acquisition aligns with the group’s ambition to become a pure specialty materials player by 2024 while supporting Bostik’s strong long-term growth ambition.
“We are very happy and proud of this move,” said Thierry Le Hénaff, Arkema’s chairman and CEO. “In a context of strong earnings growth following the recent divestment of PMMA and the start of the strategic review of Fluorogases, the acquisition of Ashland’s adhesives business is a fantastic opportunity to reinforce the Group’s presence in the US and to accelerate Bostik’s growth. With an excellent business which holds leading positions in many high-growth segments and a high level of profitability, this project fully aligns with the Group’s targeted acquisition strategy.
“Ashland’s adhesives will constitute a new technological platform for our adhesives and the synergies are particularly high given the geographical and application complementarities with Bostik and our Coating Solutions platform. The cultures of the teams are very close, focused on customer centricity and sustainable innovation. We look forward to welcoming Ashland’s high-caliber management team and to partner together for this high value creative deal.”
With projected sales of $360 million for 2021, Ashland’s Performance Adhesives business has reportedly enjoyed sustained growth in recent years and has significant growth potential in Europe and Asia. The division employs approximately 330 people and operates six production plants, mainly in North America.
“Performance Adhesives is a high-quality business with a strong and dedicated team that has demonstrated consistent and exceptional financial performance over the years,” said Guillermo Novo, Ashland chairman and CEO. “I want to thank the leadership team and global employees for their dedication and commitment to Ashland and to our customers. I believe that Arkema will be a great owner of the business, creating value for customers and employees.”
Ashland reports that it expects net proceeds from the sale to total approximately $1.2-$1.3 billion. The transaction is driven by Ashland’s strategy to focus its resources on expanding its additive and ingredients portfolio, which will be aligned with long-term environment, social, and governance (ESG) drivers and with resilient high-quality consumer markets that value innovation.
The project is subject to the approval of the antitrust authorities in the countries concerned. Relevant legal information and consultation process involving employee representative bodies will be performed before closing.