Arkema has closed its previously announced acquisition of Ashland’s Performance Adhesives business for around $1.65 billion in an all-cash transaction.
The company signed an agreement to acquire Ashland’s business in August last year.
Ashland’s Performance Adhesives business supplies a wide range of adhesives for flexible packaging and pressure-sensitive adhesives for various markets, including decorative labels, protection and signage films for automotives and buildings.
The business operates a network of six production plants, most of which are located in North America, and has around 330 employees.
Last year, the business generated an estimated $360 million in sales and an earnings before interest, tax, depreciation and amortisation (EBITDA) margin above 25%.
The deal is in line with Arkema’s strategy to deal exclusively in speciality materials by 2024.
It is also intended to help the company’s adhesive and sealing business, Bostik, to expand its range of product offerings and strengthen its position in the high-performance industrial adhesives market.
Arkema said that following the acquisition, Bostik can aim for an EBITDA margin above 17% by 2024.
Arkema chairman and CEO Thierry Le Henaff said: “We are very happy to welcome Ashland Performance Adhesives’ teams within Arkema.