FAIRLAWN, OHIO (Dec. 10,2010)-Omnova Solutions said it has completed its purchase of Eliokem International.
Fairlawn-based Omnova bought the specialty chemicals maekr from AXA Private Equity for $300.8 million, before subtracting Eliokem's net debt and subject to working capital and capital expenditure adjustments.
Omnova said it expects the transaction to be neutral to slightly dilutive to earnings in 2011, but accretive in 2012.
Around 75 percent of Eliokem's sales are in product markets that Omnova has not previously served, but Eliokem's business model–including manufacturing process, key raw materials and go-to-market approach–is similar to Omnova's.
Focusing on the same basic emulsion polymerization process, the acquisition adds a number of new acrylic, styrene-butadiene and nitrile chemistries and applications, including coating resins, elastomeric modifiers, antioxidants, specialty rubbers and reinforcing resins, as well as complementary products for oil field and specialty latex applications.