Elkem ASA has acquired Polysil to strengthen its position in selected specialized silicones segments in China and globally. The companies have agreed an enterprise value for Polysil of up to RMB 941 million, including potential bonus and earn-out depending on pre-agreed criteria.
Elkem’s presence and positions in other parts of China and internationally provide a solid platform for Polysil’s products for further growth. The completion of acquisition is subject to final regulatory approvals. The closing is expected by the end of first quarter 2020.
Developing Pressure Sensitive Adhesives
Polysil’s products and market positions in food, baby care, electronics and medical markets are complementary to Elkem. Polysil has particularly strong positions in the fast-growing South China market. There is a significant potential in utilizing Polysil’s high-end liquid silicones rubber and pressure sensitive adhesives specialty positions and in further developing both products and markets. Polysil’s strong research and development capabilities will be important for the development of products for both the Chinese market and globally.
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Polysil is very pleased to become part of the Elkem group and look forward to working closely with Elkem in achieving common goals. Elkem’s products, knowledge and brand complement the Polysil product range and will benefit Polysil customers going forward,” said Hanxi Ma, the largest shareholder of Polysil.
Elkem Speaking on the Acquisition
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We are continuing to deliver on our growth and specialization strategy. There are considerable synergies in leveraging Elkem’s upstream capabilities to supply raw materials and intermediates, and in combining both the product portfolio and the domestic and global market positions of Polysil and Elkem,” said Michael Koenig, CEO of Elkem.
Approximately 90 percent of Polysil’s revenues are generated in China, primarily in South China.
About Polysil
Polysil is a privately owned company has one of the leading technology positions in production and development of Heat Cured Rubber (HCR), Liquid Silicone Rubber (LSR) and specialty resin and Pressure Sensitive Adhesives (PSA).
Source: Elkem