Synthomer agrees to acquire OMNOVA at a price of US$10.15 per Share
LONDON: Synthomer plc, one of the world's major suppliers of aqueous polymers, has reached an agreement with OMNOVA Solutions on the terms of a recommended acquisition of the entire issued and to be issued share capital of OMNOVA at a price of US$10.15 per OMNOVA Share.
Acquisition values OMNOVA's entire issued and to be issued share capital at US$473 million (approximately £375 million), with implied enterprise value of US$824 million (approximately £654 million).
The directors believe the acquisition represents an attractive opportunity for Synthomer to strengthen its global position as a major speciality chemicals company underpinned by significant growth opportunities.
Calum MacLean, Chief Executive of Synthomer, said: "This transaction is an important step in the continued execution of Synthomer's strategy with an acquisition that is both strategically and financially compelling. The acquisition of OMNOVA represents an attractive opportunity to materially expand our international business into North America and expand our presence in Europe and Asia, creating a global speciality chemical company.
“The Acquisition provides an attractive financial profile with significant expected synergy benefits. Synthomer has been disciplined waiting for the right opportunity to deliver value through our inorganic growth strategy and this acquisition will provide an additional platform for Synthomer to continue to grow into the medium term.
“I am delighted to welcome OMNOVA employees to the business and look forward to working with them to take the combined business to the next level.”