REG - Synthomer PLC - Divestment of Compounds

SynthomerAnnouncement

15/04/2024 07:00

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RNS Number : 5281K  Synthomer PLC  15 April 2024

 

Synthomer plc

Divestment of Compounds

 

Synthomer plc ('Synthomer' or 'the Group') today announces an agreement to
divest its latex compounding operations ('the Compounds business') to Belgian
company Matco NV, a leader in compounds, water-based adhesives, and solutions
for various industrial applications, for consideration of c.€27.5m.

 

The Compounds business, which is part of Synthomer's Health & Protection
and Performance Materials division, was designated as non-core to the Group as
part of the strategy update announced in October 2022. It 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 in the Netherlands and one in
Egypt.

 

In the year ended 31 December 2023, the Compounds business generated
stand-alone adjusted EBITDA of €4.8m and had gross assets at the end of the
period of €56m. The transaction, which is conditional on certain customary
closing conditions, is expected to complete over the next month with
consideration payable on completion. The proceeds of the divestment will be
used to reduce Group net debt.

 

Commenting, Synthomer CEO Michael Willome said:

"This divestment is consistent with our strategy to increase the specialty
weighting of the Group, reduce the complexity of our site portfolio and
enhance our focus on higher value, higher growth markets where we have strong
and sustainable leadership positions. I would like to thank those colleagues
leaving Synthomer and wish them well for the future."

 

 

Further information:

 Investors: Faisal Tabbah, Vice President Investor Relations  Tel: +44 (0) 1279 775 306
 Media: Charles Armitstead, Teneo                             Tel: +44 (0) 7703 330 269

 

Notes

Legal Entity Identifier (LEI): 213800EHT3TI1KPQQJ56. Classification as per DTR
6 Annex 1R: 3.1.

 

Synthomer plc is a leading supplier of high-performance, highly specialised
polymers and ingredients that play vital roles in key sectors such as
coatings, construction, adhesives, and health and protection - growing markets
that serve billions of end users worldwide. Headquartered in London, UK and
listed there since 1971, we employ c.4,200 employees across our four
innovation centres of excellence and more than 30 manufacturing sites across
Europe, North America and Asia. With more than 6,000 blue-chip customers and
£2.0bn in continuing revenue in 2023, our business is built around three
divisions, serving customers in attractive end markets where demand is driven
by global megatrends including urbanisation, demographic change, climate
change and sustainability, and shifting economic power. In Coatings &
Construction Solutions, our specialist polymers enhance the sustainability and
performance of a wide range of coatings and construction products. We serve
customers in applications including architectural and masonry coatings, mortar
modification, waterproofing and flooring, fibre bonding, and energy solutions.
In Adhesive Solutions our products help our customers bond, modify and
compatibilise surfaces and components for applications including tapes and
labels, packaging, hygiene, tyres and plastic modification, improving
permeability, strength, elasticity, damping, dispersion and grip. In Health
& Protection and Performance Materials we are a world-leading supplier of
water-based polymers for medical gloves, and a major European manufacturer of
high-performance binders, foams and other products serving customers in a
range of end markets. Our purpose is creating innovative and sustainable
solutions for the benefit of customers and society. Around 20% of our sales
volumes are from new and patent protected products. At our innovation centres
of excellence in the UK, Germany, Malaysia and Ohio, USA we collaborate
closely with our customers to develop new products and enhance existing ones
tailored to their needs, with an increasing range of sustainability benefits.
Our 2030 decarbonisation targets have been approved by the Science Based
Targets initiative as being in line with what the latest climate science says
is necessary to meet the goals of the Paris Agreement, and since 2021 we have
held the London Stock Exchange Green Economy Mark, which recognises green
technology businesses making a significant contribution to a more sustainable,
low-carbon economy. Find us at www.synthomer.com (http://www.synthomer.com) or
search for Synthomer on LinkedIn.

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