OSLO, Norway—Elkem A.S.A. has completed its acquisition of Chinese silicone elastomer and resins material manufacturer Polysil, for an enterprise value of about $129 million.
Based in Zhongshan, China, Polysil has a strong position in baby care and food grade silicones, as well as products for the electronics and medical markets. Elkem CEO Michael Koenig called the acquisition "an important milestone" for Elkem, adding that its strengthens the company' position in the specialized silicones segments in China.
With more than 350 employees, Polysil is specialized in the production and development of heat cured rubber, liquid silicone rubber, specialty resins and pressure sensitive adhesives.
With two production facilities and a research and development center, the privately owned company generated an operating revenue of around $90.3 million, and an after tax earnings of $13.75 million in 2019.
According to Elkem, approximately 90 percent of Polysil's revenues are generated in China, primarily in South China.
Elkem, on the other hand, is present in other parts of China and internationally, providing a platform for Polysil's products and further growth.
"Polysil's products and market positions in food, baby care, electronics and medical markets are complementary to Elkem," said Frederic Jacquin, senior vice president of Elkem's silicones division.
In particular, Jacquin said, Elkem sees "significant potential" in Polysil's liquid silicones rubber and pressure sensitive adhesives.
"Polysil's strong research and development capabilities will be very important for development of products for both the Chinese market and globally," he said.