Synthomer Plc said on Wednesday it has agreed to buy Omnova Solutions Inc for an enterprise value of $824 million in a bid to strengthen its global position.
London-based Synthomer is offering Beachwood, Ohio-headquartered Omnova $10.15 for each share, a premium of 58% to Omnova’s closing price on Tuesday.
Completion is subject to closing conditions, including the receipt of regulatory approvals, and approval from Synthomer’s and Omnova’s shareholders. The deal will be financed through a rights issue of up to $257 million and is likely to be completed by late 2019 or early 2020.
Omnova reported sales of $769.8 million last year. It operates two business segments, specialty solutions and performance materials, with 63% of sales last year derived from the specialty solutions segment and 37% from the performance materials unit.
Acquiring Omnova will help Synthomer bolster its footprint in Europe and Asia and penetrate into China, Synthomer said in a statement.
