Synthomer has completed the acquisition of OMNOVA Solutions Inc. (‘OMNOVA’) for adhesive development. The transaction creates a global specialty chemicals company with significant scale and a strong platform from which to invest in future growth. Synthomer becomes a major world-wide player in water-based polymer solutions with greater customer reach and strong operational capabilities and will be in a stronger position to invest in growth, innovation, and people.
Acquisition to Strengthen Synthomer Business Presence Globally
The acquisition materially strengthens Synthomer's presence in North America, as well as increases its presence in Europe and Asia, including further penetration into the high growth Chinese market. Synthomer intends to utilize best practices from across the enlarged Group to improve productivity and service.
The acquisition is expected to result in estimated recurring run-rate pre-tax cost synergies of USD 29.6 million per annum by the end of the third year following completion. The acquisition is expected to be earnings accretive in the first full financial year following completion and strongly accretive thereafter. OMNOVA will be integrated into Synthomer accounts with immediate effect.
Calum MacLean, chief executive officer of Synthomer said, “
I am very grateful to everyone who has helped us complete our acquisition of OMNOVA in a relatively short time frame following the initial announcement of the transaction at the start of July. Synthomer now has global reach, a broader product portfolio and increased R&D capabilities with an exciting platform from which to attract talent and invest in future growth. We have already made strong progress to bring our businesses and I look forward to working closely with new colleagues around the world to take Synthomer forward.”
Source: Synthomer