08.31.21
An agreement was signed for Arkema’s acquisition of Ashland’s Performance Adhesives business. This project is aligned with Arkema’s ambition to become a pure Specialty Materials player by 2024.
This key step supports Bostik’s strong long term growth ambition and now allows it to aim for an EBITDA margin above 17% in 2024. The business had pro forma adjusted sales of approximately $360 million in 2021 with an EBITDA margin above 25% and 330 employees.
The offer was made on the basis of a $1,650 million enterprise value, i.e. 15x the estimated 2021 EBITDA (1) after taking into account the tax benefits linked to the structure of the transaction. Significant pre-tax synergies, estimated at 12.5% of sales, reduce the EV/EBITDA multiple to 8.7 by 2026
“In a context of strong earnings growth following the recent divestment of PMMA and the start of the strategic review of Fluorogases, the acquisition of Ashland’s adhesives business is a fantastic opportunity to reinforce the Group’s presence in the US and to accelerate Bostik’s growth,” said Thierry Le Hénaff, the Arkema’s chairman and CEO. “With an excellent business which holds leading positions in many high-growth segments and a high level of profitability, this project fully aligns with the Group’s targeted acquisition strategy.”
Ashland Performance Adhesives is a key player in pressure-sensitive adhesives in the US, operating in high-growth applications, in particular in decorative, protection, and signage films for automotive and buildings. Combined with Bostik’s and the Coating Solutions segment’s sustainable and high performance solutions, its range will represent one of the most complete offering in the pressure sensitive adhesives sector.
Ashland also holds significant positions in structural adhesives in the United States, in particular in segments such as wood bonding for construction, composites and transportation. Ashland Performance Adhesives also offers a wide range of adhesives for flexible packaging, addressing growing demand for more sustainable products.
This key step supports Bostik’s strong long term growth ambition and now allows it to aim for an EBITDA margin above 17% in 2024. The business had pro forma adjusted sales of approximately $360 million in 2021 with an EBITDA margin above 25% and 330 employees.
The offer was made on the basis of a $1,650 million enterprise value, i.e. 15x the estimated 2021 EBITDA (1) after taking into account the tax benefits linked to the structure of the transaction. Significant pre-tax synergies, estimated at 12.5% of sales, reduce the EV/EBITDA multiple to 8.7 by 2026
“In a context of strong earnings growth following the recent divestment of PMMA and the start of the strategic review of Fluorogases, the acquisition of Ashland’s adhesives business is a fantastic opportunity to reinforce the Group’s presence in the US and to accelerate Bostik’s growth,” said Thierry Le Hénaff, the Arkema’s chairman and CEO. “With an excellent business which holds leading positions in many high-growth segments and a high level of profitability, this project fully aligns with the Group’s targeted acquisition strategy.”
Ashland Performance Adhesives is a key player in pressure-sensitive adhesives in the US, operating in high-growth applications, in particular in decorative, protection, and signage films for automotive and buildings. Combined with Bostik’s and the Coating Solutions segment’s sustainable and high performance solutions, its range will represent one of the most complete offering in the pressure sensitive adhesives sector.
Ashland also holds significant positions in structural adhesives in the United States, in particular in segments such as wood bonding for construction, composites and transportation. Ashland Performance Adhesives also offers a wide range of adhesives for flexible packaging, addressing growing demand for more sustainable products.
