HARLOW, England—Synthomer P.L.C., the world's biggest maker of nitrile rubber used in medical gloves, has agreed to buy an adhesives and coatings business from Hexion Inc. for $226 million to drive expansion in the U.S. and Asia.
Hexion is a global chemical company based in Columbus, Ohio.
The purchase adds seven factories generating annual sales of $370 million and earnings before interest, taxes, depreciation and amortization of $30 million, the Harlow-based company said in a statement. Synthomer is paying a multiple of 7.5 times earnings, excluding estimated annualized cost savings from integrating the business of about $12 million.
Hexion PAC develops, manufactures and markets a wide array of dispersions, additives, powder coatings and specialty monomers, supplying customers for applications including coatings, adhesives and for building and construction. The business employs approximately 750 and operates seven sites across Europe, the U.S. and Asia.
In 2015, Hexion PAC generated sales of $370 million and EBITDA of $30 million. Synthomer said it will retain Hexion PAC's existing leadership team.
The deal is the first since the arrival last year of Chief Executive Officer Calum MacLean, who spent two decades helping to build Ineos into one of the world's top chemical companies with $54 billion in sales by acquiring the unwanted assets of oil majors such as BP P.L.C.