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Synthomer PLC - Essex, England-based chemicals company - Agrees to sell its laminates, films and coated fabrics businesses to Surteco North America Inc for a total enterprise value of $255 million.
Synthomer expects net proceeds from the sale of $245 million, which it will use to repay debts, supporting a reduction in leverage towards its target range of one to two times net debt to earnings before interest, tax, depreciation and amortisation ‘over the medium term’.
The sale is subject to regulatory approvals, with completion expected in the first quarter of 2023. Surteco is a provider of decorative surfaces.
Chief Executive Michael Willome says: ‘This divestment is consistent with our recently announced strategy to increase the specialty weighting of our portfolio and focus on higher value, higher growth markets where we have strong and sustainable leadership positions. The proceeds represent excellent value for our shareholders and the transaction is a significant step in the deleveraging of the group.’
Current stock price: 124.00 pence, up 5.6% on Tuesday morning in London
12-month change: down 69%
By Xindi Wei, Alliance News reporter
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