Synthomer plc, a leading specialty chemical company, has completed the sale of its laminates, films, and coated fabrics businesses to Surteco North America, Inc.
The sale, which was approved by Synthomer shareholders in January 2023, has now been finalized, following the satisfaction of the conditions precedent as outlined in the circular to Synthomer shareholders published in December 2022.
The final net cash proceeds received by Synthomer at completion amount to $262 million, which includes adjustments for working capital, debt, and debt-like items as described in the circular. Additionally, a further $5 million will be payable in cash on the thirteen-month anniversary of completion. The net cash proceeds will be used to reduce the Group’s debt, which is a positive development for the company.
The laminates, films, and coated fabrics businesses will now be reported as discontinued operations in the Group’s annual results for the year ending December 2022. These results are expected to be announced on March 28, 2023.
This sale is a strategic move for Synthomer, as it allows the company to focus on its core business of producing and distributing polymer emulsions and specialty chemicals. With the sale of its non-core assets, Synthomer can now concentrate on growth opportunities within its primary business areas.