COLOMBES, France—Arkema S.A. has taken another step toward its goal of being a pure specialty materials player by 2024 by acquiring the performance adhesives business of Ashland Global Holdings Inc.
The all-cash transaction is valued at approximately $1.65 billion or 20 times EBITDA. Arkema said the acquisition aligns with its focus on "sustainability and high performance solutions" and supports U.S. subsidiary Bostik to aim for an EBITDA margin above 17 percent in 2024.
Ashland, a leader in pressure-sensitive adhesives in the U.S., has 330 employees over six production plants, mainly in North America. It is on track for 2021 sales of $360 million and an EBITDA margin above 25 percent, Arkema said. It also has "significant growth potential" in Europe and Asia, Arkema said.
"Combined with Arkema's global positioning, the excellent technological, geographic and commercial complementarities of this acquisition will enable Bostik to expand its offering and position itself as a major player in high performance industrial adhesives," the company said in a statement.