Arkema acquires performance adhesive business

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.

Ashland's performance adhesive business includes decorative, protection and signage films for automotive and buildings. Ashland also holds positions in structural adhesives such as wood bonding for construction, composites and transportation. The company offers a range of adhesives for flexible packaging, addressing growing demand for more sustainable products, Ashland said.

"We are very happy and proud of this move," said Thierry Le Henaff, the group's Chairman and CEO. "The acquisition ... is a fantastic opportunity to reinforce the group's presence in the U.S. and to accelerate Bostik's growth."

"Performance Adhesives is a high-quality business with a strong and dedicated team that has demonstrated consistent and exceptional financial performance over the years," said Guillermo Novo, Ashland chairman and CEO. "I want to thank the leadership team and global employees for their dedication and commitment to Ashland and to our customers. I believe that Arkema will be a great owner of the business, creating value for customers and employees."