LONDON—Synthomer P.L.C. has agreed to divest its latex compounding operations to Waregem, Belgium-based chemicals manufacturer Matco N.V.
The deal, valued at about $29 million (€27.5 million), is expected to be completed over the next month, subject to customary closing conditions, Synthomer said in an April 15 announcement. The proceeds of the deal will reduce the London-based company's net debt.
The compounds business is part of Synthomer's Health & Protection and Performance Materials division. With two manufacturing sites in the Netherlands and one in Egypt, the unit produces certain latex-based compounds and curing additives used in a range of end markets, including flooring and artificial grass, according to Synthomer.
It was designated as "non-core" to the group as part of a strategy update the company announced in October 2022.
In 2023, the unit generated stand-alone adjusted EBITDA of $5.1 million, based on average 2023 exchange rates, and had gross assets at the end of the period of about $60.5 million.
Matco specializes in compounds, water-based adhesives and solutions for various industrial applications.
Synthomer CEO Michael Willome said the divestment is "consistent" with the company's strategy to increase its specialty weighting and reduce the complexity of its site portfolio.
He said the divestment also will allow the company to "enhance our focus on higher value, higher growth markets where we have strong and sustainable leadership positions."
Synthomer is a supplier of high-performance and specialized polymers and ingredients for the coatings, construction, adhesives, and health and protection industries. It employs 4,200 across four innovation centers and more than 30 manufacturing sites throughout Europe, North America and Asia.
