PETRONAS Chemicals Group to Acquire Perstorp Group

Perstorp Group said that it is to be acquired by PETRONAS Chemicals Group Berhad (PCG). PCG announced that it has signed a Securities Purchase Agreement on May 14, 2022 to acquire the entire equity interest in Perstorp Holding AB. The agreement was signed with Financière Forêt S.à.r.l, a company under PAI Partners, a European private equity firm.

“We are excited to become part of the PETRONAS family,” Jan Secher, president and CEO of Perstorp, said. “I see a strong commonality in values and priorities for how to take our respective businesses forward, meeting the challenges and opportunities of the future. By tapping into PCG’s strength and market leading position in the Asia Pacific region, we are confident that Perstorp can continue to develop into its next phase of growth.

“Being part of PCG means Perstorp gets the scale to increase the pace of innovation and accelerate our sustainable transformation, which is at the forefront of the chemical industry,” added Secher. “PCG’s and Perstorp’s businesses complement each other very well.”

“Perstorp is an outstanding strategic fit for PCG and enables us to participate in attractive end-markets such as paints and coatings, construction, plastic additives, personal care and food, feed & nutrition, paints and coatings that share a robust growth outlook. This acquisition will also provide us critical talent, know-how, technological platforms and proven customer channels to address the pressing needs of the market for more eco-friendly and sustainable solutions,” said Ir. Mohd Yusri Mohamed Yusof, PCG managing director and CEO.

Established more than 140 years ago, Perstorp is a niche specialty chemicals player that develops sustainable solutions with focus on the resins & coatings, engineered fluids and animal nutrition markets. The company has a global sales presence, seven state-of-the-art manufacturing sites in Europe, US and China (the eighth plant will be ready in India in 2023) and three research and development (R&D) centrers worldwide with approximately 1,500 employees serving more than 2,600 customers globally.

PCG’s journey to achieve its vision of becoming the preferred chemical company providing innovative customer solutions is based on a clear strategy; to strengthen its basic petrochemicals portfolio, and to selectively diversify into derivatives, specialty chemicals and solutions. In the execution of this strategy, the acquisition of Perstorp group marks the creation of a significant specialty chemicals portfolio, while enhancing PCG’s overall earnings.

The acquisition values Perstorp Group at an enterprise value of €2,300 million.

The completion of the acquisition is subject to relevant regulatory and shareholders’ approvals.