Arkema S.A. signed an agreement related to the acquisition of Ashland Global Holdings Inc.’s Performance Adhesives business for $1.65 billion.
The company said that the acquisition is perfectly aligned with the Group’s ambition to become a pure Specialty Materials player by 2024.
With estimated sales of around $360 million and an estimated EBITDA at a very high level of around $95 million in 2021, Ashland offers a portfolio of high-performance adhesive solutions in high-value-added industrial applications.
The offer was made on the basis of a $1.65 billion enterprise value, after taking into account the tax benefits linked to the structure of the transaction
With its large range of key technologies and well-known brands, Ashland Performance Adhesives is a key player in pressure-sensitive adhesives in the United States, 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. This will allow Bostik to complement its positions and to benefit from fast-growing demand driven by major sustainable trends.
Finally, Ashland Performance Adhesives offers a wide range of adhesives for flexible packaging, addressing growing demand for more sustainable products. Thanks to Ashland’s positioning in North America, Bostik will complete its geographic presence in flexible lamination, becoming one of the world’s key players in this sector.
Ashland’s Performance Adhesives business operates 6 production plants, mainly in North America.
This acquisition also allows to upgrade the 2024 profitability target for Arkema’s Adhesive Solutions segment, which now aims for an EBITDA margin above 17%, among the very best in the industry, with sales of over €3 billion ($3.55 billion).