Yule Catto snaps up PolymerLatex

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Speciality chemicals maker Yule Catto is spending €157m (£132m) to acquire Germany's PolymerLatex from London-based private equity group TowerBrook Capital Partners.

The deal includes taking on €286m in the target's debts, and Yule Catto will fund the scheme with a four-for-three rights issue aimed at raising £225m.

The FTSE 250-listed group has also negotiated new credit facilities, including a three-year loan of £150m, denominated in euros, and a multi-currency facility worth £60m.

The deal is a bid to expand Yule Catto's business in Europe and Asia, boosted by PolymerLatex's factories in Germany, Italy and Malaysia.

Yule Catto's shares closed up by 11.54 per cent.