Synthomer plc
Divestment of Compounds
Synthomer plc ('Synthomer' or 'the Group') today
announces an agreement to divest its latex compounding operations
('the Compounds business') to Belgian company Matco NV, a leader in
compounds, water-based adhesives, and solutions for various
industrial applications, for consideration of c.€27.5m.
The Compounds business, which is part of
Synthomer's Health & Protection and Performance Materials
division, was designated as non-core to the Group as part of the
strategy update announced in October 2022. It produces certain
latex-based compounds and curing additives used in the manufacture
of products for a range of end markets including flooring and
artificial grass. The business comprises two manufacturing sites in
the Netherlands and one in Egypt.
In the year ended 31 December 2023, the
Compounds business generated stand-alone adjusted EBITDA of €4.8m
and had gross assets at the end of the period of €56m. The
transaction, which is conditional on certain customary closing
conditions, is expected to complete over the next month with
consideration payable on completion. The proceeds of the divestment
will be used to reduce Group net debt.
Commenting,
Synthomer CEO Michael Willome said:
"This divestment is consistent with our strategy
to increase the specialty weighting of the Group, reduce the
complexity of our site portfolio and enhance our focus on higher
value, higher growth markets where we have strong and sustainable
leadership positions. I would like to thank those colleagues
leaving Synthomer and wish them well for the future."
Further information:
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Investors: Faisal Tabbah, Vice
President Investor Relations
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Tel: +44 (0) 1279 775 306
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Media: Charles Armitstead,
Teneo
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Tel: +44 (0) 7703 330 269
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Notes
Legal Entity Identifier (LEI):
213800EHT3TI1KPQQJ56. Classification as per DTR 6 Annex 1R:
3.1.
Synthomer plc is a leading supplier
of high-performance, highly specialised polymers and ingredients
that play vital roles in key sectors such as coatings,
construction, adhesives, and health and protection - growing
markets that serve billions of end users worldwide. Headquartered
in London, UK and listed there since 1971, we employ c.4,200
employees across our four innovation centres of excellence and more
than 30 manufacturing sites across Europe, North America and Asia.
With more than 6,000 blue-chip customers and £2.0bn in continuing
revenue in 2023, our business is built around three divisions,
serving customers in attractive end markets where demand is driven
by global megatrends including urbanisation, demographic change,
climate change and sustainability, and shifting economic power. In
Coatings & Construction Solutions, our specialist polymers
enhance the sustainability and performance of a wide range of
coatings and construction products. We serve customers in
applications including architectural and masonry coatings, mortar
modification, waterproofing and flooring, fibre bonding, and energy
solutions. In Adhesive Solutions our products help our customers
bond, modify and compatibilise surfaces and components for
applications including tapes and labels, packaging, hygiene, tyres
and plastic modification, improving permeability, strength,
elasticity, damping, dispersion and grip. In Health &
Protection and Performance Materials we are a world-leading
supplier of water-based polymers for medical gloves, and a major
European manufacturer of high-performance binders, foams and other
products serving customers in a range of end markets. Our purpose
is creating innovative and sustainable solutions for the benefit of
customers and society. Around 20% of our sales volumes are from new
and patent protected products. At our innovation centres of
excellence in the UK, Germany, Malaysia and Ohio, USA we
collaborate closely with our customers to develop new products and
enhance existing ones tailored to their needs, with an increasing
range of sustainability benefits. Our 2030 decarbonisation targets
have been approved by the Science Based Targets initiative as being
in line with what the latest climate science says is necessary to
meet the goals of the Paris Agreement, and since 2021 we have held
the London Stock Exchange Green Economy Mark, which recognises
green technology businesses making a significant contribution to a
more sustainable, low-carbon economy. Find us at
www.synthomer.com
or search for Synthomer on LinkedIn.