Arkema finalizes Bostik acquisition

COLOMBES, France—Arkema S.A. finalized the acquisition of Bostik S.A. from Total S.A. on Feb. 2, bringing what it says is the world's No. 3 adhesives provider into its portfolio.

Arkema said it financed the acquisition in three phases, totaling about $2 billion. It first had a hybrid bond issue of about $800 million in October and then conducted a share capital increase of about $400 million in December. Finally, it conducted another bond issue of about $800 million with a 1.5 percent coupon.

Bostik will constitute a new business unit—Specialty Adhesives—within Arkema's High Performance Materials segment. Bostik's former CEO, Bernard Pinatel, has been appointed to Arkema's executive committee and will succeed Pierre Chanoine, who is retiring.

Pinatel will head the High Performance Materials segment and remain the managing director of Bostik.

“It is with great pleasure that we welcome the Bostik teams,” Thierry Le Henaff, Arkema chairman and CEO, said in a statement. “I firmly believe in the quality and the development potential of this company which represents a promising growth platform for the future. I also want to thank everyone who, through their true professionalism, has helped finalize quickly the operation and its financing.”

Arkema estimates Bostik will bring its sales to about $8.67 billion based on 2013 pro forma consolidated sales from the two firms. Arkema now employs about 19,000 people worldwide.

Bostik employs about 4,900 in 40 countries. Arkema estimated its sales at about $1.71 billion and said Bostik would reinforce its position in specialty chemicals and further develop its High Performance Materials segment.

Arkema is Total's former chemicals arm, spun off from the oil and gas giant in 2004 with its initial public offering on the Paris Bourse in May 2006. It consists of three business segments—High Performance Materials, Industrial Specialties and Coating Solutions.