French specialty materials company Arkema has announced its plan to acquire PIAM, a South Korean-based global leader in polyimide films and graphite sheets. With over 30% global market share, PIAM specializes in providing cutting-edge materials for high-growth markets such as mobile devices and electric vehicles.
The acquisition, subject to regulatory approval, will allow Arkema to consolidate PIAM in its accounts, expanding its presence in attractive markets and driving organic sales growth.
PIAM’s Innovative Offerings and Market Position:
PIAM’s ultra-high-performance polyimides are at the forefront of material technology, offering exceptional temperature resistance, dimensional stability, flexibility, and electrical insulation. These advanced materials find applications in electric vehicles, consumer electronics, semiconductor manufacturing, and other industrial sectors requiring miniaturization, improved thermal management, safety, and durability. With a strong foothold in markets like electric vehicles, consumer electronics, and flexible screens, PIAM’s sales are projected to grow by around 13% annually, fueled by its robust innovation pipeline and successful customer qualifications in emerging technologies such as 5G antennas and high-resolution OLED displays.
Strong Growth Prospects:
The acquisition aligns with Arkema’s strategy of becoming a pure player in Specialty Materials and capitalizing on fast-growing applications driven by megatrends. By incorporating PIAM into its Advanced Materials segment, Arkema strengthens its high-performance polymer range and anticipates accelerated organic sales growth along with an expanded EBITDA margin. The recent completion of a capital expenditure program worth approximately €100 million will support PIAM’s mid-term development plans and further enhance its growth potential.
Synergies and Financial Considerations:
The deal, valued at €728 million for a 54% stake in PIAM, will enable full consolidation of the company in Arkema’s accounts, while the remaining 46% of shares will continue to be listed on the Korean stock exchange. The acquisition is expected to generate substantial pre-tax synergies estimated at around €30 million at the EBITDA level within the next five years. These synergies will be driven by the complementary product ranges of Arkema and PIAM, the geographic reach of Arkema, and PIAM’s strong customer relationships in Asia. The transaction will be financed entirely in cash, ensuring Arkema maintains a robust balance sheet and a net debt level within its financial leverage objective of 2x EBITDA.
Following the acquisition, Arkema aims to leverage its technological profile and capitalize on the accelerating demand associated with megatrends. The company prioritizes organic growth, leveraging its wide range of innovative technologies in attractive markets and applications. In terms of M&A, Arkema will continue to pursue the deconsolidation of its Intermediates segment and focus on bolt-on operations, particularly in the adhesives sector.
“PIAM is an outstanding company with a unique technological positioning, state-of-the-art manufacturing facilities and invaluable customer relationships. This acquisition is fully aligned with our strategy to be at the forefront of high-performance materials for high-growth end markets supported by megatrends such as electric vehicles and advanced electronics.
After the divestment of PMMA, the acquisition of Ashland adhesives and the current start-up of our bio PA11 plant in Singapore, Arkema is delivering another significant milestone of its strategy focused on innovative materials for a sustainable world,” said Thierry Le Hénaff, Arkema’s Chairman And Chief Executive Officer.