Synthomer plc has announced the acquisition of Hexion Performance Adhesives & Coatings (Hexion PAC), a business of Hexion Inc., a global chemical company based in Columbus, OH. The total consideration is $226 million, which is being funded from both existing cash resources and utilisation of additional credit facilities. The acquisition is expected to complete during the summer 2016 following receipt of regulatory approvals and satisfaction of other closing conditions.
Hexion PAC 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. The business employs approximately 750 employees and operates seven sites across Europe, the US and Asia.
In 2015, Hexion PAC generated sales of $370 million and EBITDA of $30 million. The existing leadership team of Hexion PAC will transfer with the business to Synthomer.
The acquisition of HEXION PAC significantly strengthens Synthomer’s position in the performance adhesives and coatings market, offering access to new product technologies, customers and markets. Following completion, the Group will have a stronger platform from which to continue its growth aspirations in the Speciality Coatings market.