Arkema acquires Dow’s flexible packaging laminating adhesives business
06 May 2024 --- Arkema has agreed to acquire Dow’s flexible packaging laminating adhesives business, one of the leading producers of adhesives for the flexible packaging market, generating annual sales of around US$250 million.
The proposed acquisition will expand Arkema’s portfolio of solutions for flexible packaging and is expected to close in the fourth quarter of 2024.
“[The acquisition] is perfectly in line with Arkema’s strategy to offer its customers innovative products with high technological content and continue to grow in the attractive adhesives segment,” shares Thierry Le Hénaff, Arkema’s chairman and CEO.
“It will allow the group and Bostik to broaden its commercial and geographic presence in packaging and complete its product ranges in this demanding and rapidly evolving market, notably regarding sustainable development challenges. We are delighted to welcome Dow’s teams in this new development stage.”
Complementing Arkema’s adhesives and sealants business unit Bostik’s existing commercial presence, product offering and technological breadth for flexible packaging, the acquisition is expected to enable Bostik to position itself as a key global partner for customers across the packaging industry.
Strategically complementary
Dow’s flexible packaging laminating adhesives business offers a broad range of solutions in food and medical applications.
“Boasting cutting-edge technologies, well-recognized brands such as Adcote and Mor-free, and five state-of-the-art production sites in Italy, the US and Mexico, Dow’s laminating adhesives business is one of the main historical solutions providers for the packaging industry, with presence in North America and Europe,” says Arkema.
The proposed acquisition is based on an enterprise value of US$150 million and will trigger approximately US$50 million of implementation costs over the next three years.
“Beyond benefiting from the underlying growth and the recovery of the market in the coming years, Arkema aims to rapidly capture new growth opportunities and deliver a high and balanced level of cost and development synergies, which should represent around US$30 million in EBITDA after five years,” details the company.
Edited by Radhika Sikaria
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