By Michele Maatouk
Date: Thursday 28 Oct 2021
LONDON (ShareCast) - (Sharecast News) - Synthomer has agreed to buy Adhesive Technologies - the Adhesive Resins business of Eastman Chemical Company - for $1bn (£728m) in cash.
The deal will be financed through an equity placing to raise around £200m ($275m), existing cash and a new $300m debt facility.
Synthomer said on Thursday that the deal will bring "significant benefits", including well-invested assets with a global leading position in adhesives, six plants with strong Safety, Health & Environment standards and a strong R&D track record, among other things.
Chief executive Calum MacLean said: "Alongside the diversification of our portfolio, end-markets and geographies, our acquisition strategy looks to add new and highly complementary growth opportunities to Synthomer's global portfolio. Adhesive Technologies delivers on that ambition, giving us a leading position in the growing global adhesives market and extending our portfolio of differentiated products and sustainable solutions.
"The business is well-invested, with six manufacturing facilities, a highly skilled and experienced workforce and has a compelling R&D track record and strong innovation pipeline which will deliver meaningful revenue growth over the next few years. It is a business that we have long-admired, and I am confident that the combination of Synthomer and Adhesive Technologies will drive meaningful value for all stakeholders in the years ahead."
At 0915 BST, the shares were up 3.6% at 491.17p.
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Currency | UK Pounds |
Share Price | 304.50p |
Change Today | 16.50p |
% Change | 5.73 % |
52 Week High | 811.74 |
52 Week Low | 122.50 |
Volume | 1,072,257 |
Shares Issued | 163.57m |
Market Cap | £498.06m |
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Latest | Previous | |
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Ex-Div | n/a | 01-Jun-22 |
Paid | n/a | 05-Jul-22 |
Amount | 0.000p | 21.30p |
Time | Volume / Share Price |
15:17 | 1 @ 304.50p |
15:13 | 545 @ 303.00p |
15:13 | 545 @ 303.00p |
14:43 | 10 @ 310.00p |
15:11 | 5 @ 305.00p |
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