Arkema finalized the acquisition of Dow’s flexible packaging laminating adhesives business, one of the leading global producers of adhesives for the flexible packaging market. This operation will enable the Group to significantly expand its portfolio of solutions for flexible packaging and become a key player in this attractive market.

With annual sales of around US$250 million, Dow’s flexible packaging laminating adhesives business offers a broad range of high-quality solutions in food and medical applications, as well as for industrial lamination.

This acquisition will enable Bostik to ideally complement its existing commercial presence, product offering and technological breadth for flexible packaging. Beyond benefiting from the underlying growth and from the recovery of the market, the Group aims to rapidly capture new growth opportunities. It also expects to deliver a high level of cost and development synergies, which should represent around US$30 million in EBITDA after 5 years.

This acquisition is based on an enterprise value of US$150 million and will trigger around US$50 million of implementation costs or capex over the next three years.

“We are particularly happy to welcome Dow’s flexible packaging laminating adhesives’ team within Arkema. This operation marks a step change for Bostik in the flexible packaging adhesives market and is a unique opportunity to position ourselves among the key partners for customers across the packaging industry,” Thierry Le Hénaff, Arkema’s Chairman and Chief Executive Officer.