Synthomer plc to sell laminates, films and coated fabrics businesses for $255 million

LONDON, UK: Synthomer plc has agreed to the sale of its laminates, movies and coated materials companies to Surteco North America for a complete enterprise worth of roughly US$255 million (£208 million).

Transaction highlights

• The net proceeds arising from the Proposed Transaction are anticipated to be roughly US$245 million (£199 million).
• The consideration implies an EV/EBITDA a number of of roughly eight times based on the EBITDA for the 12-month interval ended 31 December 2021, which compares favourably with the post-synergy acquisition a number of of roughly 7 times achieved in reference to the OMNOVA acquisition in April 2020
• The Net Proceeds will be used to repay sure indebtedness so as to strengthen the Group’s balance sheet and support a discount in leverage towards the Company’s goal vary of 1 to 2 times Net Debt to EBITDA over the medium term
• The Proposed Transaction is in line with Synthomer’s technique as set out on the Capital Markets Day in October to extend the specialty weighting of its portfolio through the sale of recognized non-core assets

The proposed transaction constitutes a Class 1 transaction for the needs of the Listing Rules, and therefore requires the approval of Synthomer’s shareholders. A round containing additional particulars of the Proposed Transaction and a discover convening a general assembly of Synthomer will be despatched to Synthomer’s shareholders in due course

Assuming satisfaction or waiver of all conditions to the Proposed Transaction, Completion is anticipated to happen in Q1 2023

Michael Willome, CEO, Synthomer plc, said: “This divestment is constant with our recently introduced technique to extend the specialty weighting of our portfolio and focus on higher value, higher growth markets the place we have strong and sustainable management positions. The proceeds represent excellent worth for our shareholders and the transaction is a significant step within the deleveraging of the Group. I would like to thank these colleagues leaving Synthomer and want them well for the future.”