Brief: Arkema Acquires PI Advanced Materials For EUR 728 Mln

PI Advanced Materials

28/06/2023 06:43

June 28 (Reuters) - Arkema SA  AKE.PA :
    * ARKEMA BROADENS ITS RANGE OF HIGH PERFORMANCE POLYMERS
WITH THE
ACQUISITION OF A CONTROLLING STAKE IN PI ADVANCED MATERIALS
    * PROPOSED ACQUISITION OF GLENWOOD PRIVATE EQUITY'S 54%
STAKE IN
LISTED SOUTH KOREAN COMPANY PI ADVANCED MATERIALS (PIAM), FOR
EUR 728M ENTERPRISE VALUE
    * COMPANY WILL BE FULLY CONSOLIDATED IN ARKEMA'S ACCOUNTS
    * PIAM'S SALES EXPECTED TO GROW AT 13% P.A., DRIVEN BY
UNIQUE
OPPORTUNITIES FOR POLYIMIDE IN INCREASINGLY DEMANDING
APPLICATIONS
    * VALUATION REPRESENTING C.20X AVERAGE 2021/2022 EBITDA, AND
TARGETING 8X 2027 ESTIMATED EBITDA, POST SYNERGIES EVALUATED AT
EUR 30 MILLION
    * TRANSACTION FULLY FINANCED IN CASH, MAINTAINING A STRONG
BALANCE
SHEET WITH A NET DEBT ON EBITDA RATIO WITHIN ARKEMA'S FINANCIAL
LEVERAGE OBJECTIVE OF 2X
    * REMAINING 46% OF SHARES WILL CONTINUE TO BE LISTED ON
KOREAN
STOCK EXCHANGE
    * DEAL, WHICH IS SUBJECT TO APPROVAL OF CHINESE AND KOREAN
ANTI-TRUST AUTHORITIES, SHOULD BE FINALIZED END-2023

Source text for Eikon:  ID:nBw31LxCxa 
Further company coverage:  AKE.PA 

 (Gdansk Newsroom)
 ((gdansk.newsroom@thomsonreuters.com; +48 58 769 66 00;))