Synthomer: Omnova transition goes well despite pandemic

PITTSBURGH—When Synthomer P.L.C. closed on its purchase of Omnova Solutions Inc. in 2020, it was just as the cutbacks and restrictions brought on by the COVID-19 pandemic were taking hold.

In fact, the deal—which had an enterprise value of about $825 million, including such factors as debt assumption—closed on April Fools Day, but it was no joke, quipped Alexandra Diehl, head of sales of performance elastomers in the Americas for Synthomer.

Leading up to the acquisition, the Synthomer board and management traveled regularly to the U.S., and the Omnova board went to its sites around the globe, she said during the recent ACS Rubber Division's International Elastomer Conference in Pittsburgh.

"They were getting ready for the acquisition, understanding production assets and getting to know the people," Diehl said. "We were already prepared while not in the middle of the pandemic."

But then, of course, travel came to a halt and company leadership had to change course, dealing with the transition from afar.

"In hindsight, we were really surprised at how well everything went," she said. "Of course it came with challenges. We had video meetings non-stop."

After spending seven to eight hours a day on those meetings, Diehl said staff would then have to perform its "normal" duties. "It was a very exhausting time for everyone, but at the same time a very productive time," she said. "We also were surprised at how quickly and efficiently the organization grew and came together."

As a producer of polymers, dispersions and elastomers, Beachwood, Ohio-based Omnova brought eight U.S. manufacturing sites and 13 around the globe. It helped Synthomer become a truly global specialty chemicals company.

"We were competitors before, and we really wanted to expand our global footprint," said Diehl. "Synthomer didn't really have much on the ground in the U.S. That is why Omnova was so attractive."

Synthomer touts itself as one of the world's top suppliers of aqueous polymers in coatings, construction, textiles, paper and synthetic latex glove industries.

With its global headquarters in London, it has regional centers in Harlow, England; Marl, Germany; Malaysia; and Atlanta. It employs more than 4,750 across 38 global sites, posting annual sales of about $2.2 billion, according to its website.

Besides its core nitrile rubber latex and SBR latex businesses, Synthomer also supplies a number of performance additive materials utilized in the rubber business.

One is vinyl pirodine latex, used in RFL dips (resorcinol formaldehyde latex), that is used to promote adhesion between cord and rubber, used extensively in tire production, along with hose and belt production. It is marketed under the Pliocord brand, and produced in France.

Though a number of suppliers are looking to make the RFL dip more environmentally friendly, that involves the formaldehyde side of the equation and shouldn't impact what Synthomer produces for these markets, Phil Sheridan, business development manager for the firm's NBR health and protection business, said at the IEC.

Its Pliolite S6B is a high-styrene resin used to reinforce rubber with improved processing characteristics. Synthomer is the only domestic manufacturer with this particular chemistry, formulated in Akron, which is a big selling point given the current supply chain issues.

It also sells its Chemigum family of material to enhance thermoplastic vulcanizate and polyvinyl chloride materials, with its proprietary Sumigum line also used to boost these materials.

"When it comes to performance additives, we're looking at enabling product performance, processing efficiencies, and cost and use enhancements to rubber, PVC and TPEs," Sheridan said. "We work really closely with customers to tailor specific solutions to meet performance requirements."

In addition, Synthomer is investing in a plant in the United Kingdom that makes liquid polybutadiene under the Lithene brand, a material that improves compression set and heat aging, among other benefits.

Diehl said the transition was a bit rocky because of supply chain constraints that have dominated 2021. "We know how to deal with imports pretty well," he said. "We have been importing all of our lives, but what we have seen this last year, no one has ever seen it before.

"Everyone is dealing with the same circumstances and products," she said. "Other than that, because of all the video exchanges, the customers have adapted to it as well."

With no end in sight to the supply chain crisis, Synthomer is using Southern ports when possible, using rail delivery and signing new contracts with trucking companies that may cost more but provide increased security.

"We had situations where we had raw materials three hours away from us and we had to wait three weeks because we couldn't find truckers," she said. "We will pay more money to make sure things improve."

Sales for Synthomer have been strong, and the firm has been able to service customers, though not always on the expected date.

"We have very high expectations," Diehl said. "It's never really a full fulfillment unless you straighten out the issues you're dealing with. Under the circumstances, everything has been going exceptionally well."