Synthomer plc, a global differentiated chemicals company, today announced it has agreed to acquire the Adhesive Resins business of Eastman Chemical Company, which develops, manufactures and sells tackifying resins and additives for adhesive products, with a strong focus on attractive end markets such as hygiene, packaging and high performance tyre additives, for $1 billion in cash.

 

On completion of the acquisition of the Adhesive Resins business of Eastman, Synthomer will build on its significant portfolio and geographic growth alongside the diversification of its portfolio, end-markets and geographies with this new and highly complementary growth opportunity.  

 

The acquisition will be conditional on various regulatory approvals and customary closing conditions.

 

Commenting on today's announcement, Caroline Johnstone, Chair of Synthomer, said, “This acquisition is another important strategic step for Synthomer. It builds on the significant portfolio and geographic expansion gained from acquiring OMNOVA last year and adds an exciting new platform for growth. Adhesive Technologies’ global positioning, market leading technology with a strong focus on attractive end markets such as hygiene, packaging and high performance tyre additives are highly complementary to our existing business. Together with Synthomer’s incoming CEO, Michael Willome, who has been closely involved and who has fully endorsed this transaction, I look forward to welcoming Adhesive Technologies’ colleagues to the Company and working together to deliver on the exciting potential that the combination of our two businesses undoubtedly brings.”

 

Calum MacLean, Chief Executive of Synthomer, said, “Alongside the diversification of our portfolio, end-markets and geographies, our acquisition strategy looks to add newand 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.”