LONDON—Synthomer P.L.C. completed the previously announced divestment of its latex compounding operations to Belgian chemicals company Matco N.V.
The value of the transaction was $29.6 million (€27.5 million), equivalent to an EV/standalone trailing earning (EBITDA) multiple of six times, London-based Synthomer said May 1.
Synthomer expects the divestment to result in "a modest profit on disposal," with the proceeds to be used to reduce group net debt.
Headquartered in Waregem, Belgium, Matco specializes in compounds, water-based adhesives and solutions for various industrial applications.
As previously announced by Synthomer, the divested business was part of the group's Health & Protection and Performance Materials division and was designated as "non-core" to the group in October 2022.
The unit produces certain latex-based compounds and curing additives used in the manufacture of products for a range of end-markets, including flooring and artificial grass.
The business comprises two manufacturing sites: one in the Netherlands, the other in Egypt, according to Synthomer.
Last year, the business generated stand-alone adjusted earnings (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.
The divestment is consistent with group strategy to increase "the specialty weighting of the group" and reduce complexity of its site portfolio, Synthomer CEO Michael Willome said April 15.
The United Kingdom-based group also aims to enhance its focus on "higher value and higher growth markets" where it has "strong and sustainable leadership positions," Willome added.
