PTTGC Buys Coating Resins Maker Allnex for $4.75 Billion

Thailand’s PTT Global Chemical (PTTGC) has agreed to buy German coating resins maker Allnex from buyout group Advent in a 4 billion-euro ($4.75 billion) deal.

PTTGC said it agreed a loan agreement with its parent, PTT, an energy major, for up to 73.9 billion baht ($2.27 billion) to fund its investment.

The deal values Allnex at 12.2 times its annual core earnings of 325 million euros ($444.7 million) in the 12 months ended in March 2021.

Allnex Holding GmbH is engaged in the production of Coating Resins and Additives used for architectural applications, general industry protective coating for car industry including specialty coatings and inks.

Advent acquired Cytec Industries’ coating resins business in 2013 for $1.15 billion euros, rebranded it Allnex and merged it with peer Nuplex in 2016, which it bought for $800 million.

PTTGC’s acquisition of Allnex will improve the latter’s access to raw materials and to the Asian market, which has strong growth potential for coating resins, the companies said.

The deal is expected to close in the fourth quarter.