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Synthomer Acquires Perstorp Belgium Additives Business from Sweden's Perstorp.

M2 EQUITYBITES-March 7, 2017-Synthomer Acquires Perstorp Belgium Additives Business from Sweden's Perstorp

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7 March 2017 - UK-based speciality chemicals company Synthomer plc (LSE: SYNT) has acquired additives business Perstorp Oxo Belgium AB from Swedish speciality chemicals firm The Perstorp Group, the company said.

Synthomer will pay an enterprise value of EUR 78m (USD 82.53m) which will be fully funded from existing financial resources.

The acquisition, which completed on 5 March, represents a multiple of 8.5x 2016 Adjusted EBITDA.

This is expected to fall to approximately 7.0x EBITDA post integration reflecting operational efficiencies and increased volumes to existing customers.

Perstorp Belgium will be consolidated into Synthomer's results from March 2017.

In the year to 31 December 2016, Perstorp Belgium generated reported earnings before interest and tax of EUR8 m. At 31 December 2016, Perstorp Belgium had gross assets of EUR21 m.

Perstorp Belgium is a niche performance additives business serving the decorative and industrial coatings industries.

IThe business operates from a well located, single site in Ghent, Belgium where there is potential for growth capacity for future demand.

Synthomer said that Perstorp Belgium is highly complementary to its existing markets and customers.

The group will focus on expanding Perstorp Belgium's market position by developing closer relationships with customers through leveraging its existing sales and technical services infrastructure, and driving operational performance.

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Publication:M2 EquityBites (EQB)
Geographic Code:4EUBL
Date:Mar 7, 2017
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