Arkema Acquires Dow's Flexible Packaging Laminating Adhesives Business
Arkema recently finalized the acquisition of Dow’s flexible packaging laminating adhesives business. This acquisition will significantly expand Arkema's portfolio of solutions for flexible packaging, positioning the company as a key player in this attractive market.
Dow’s flexible packaging laminating adhesives business, with annual sales of around $250 million (€238 million), offers a broad range of high-quality solutions for food, medical, and industrial applications. The business operates five state-of-the-art production sites in Italy, the United States, and Mexico.
The acquisition will enable Arkema's subsidiary, Bostik, to complement its existing commercial presence, product offering, and technological breadth for flexible packaging. The Group aims to capture new growth opportunities and expects to deliver significant cost and development synergies, estimated to represent around $30 million (€28.5 million) in EBITDA after five years. The acquisition is based on an enterprise value of $150 million (€142.5 million) and will incur approximately $50 million (€47.5 million) in implementation costs or capital expenditures over the next three years.
“We are particularly happy to welcome Dow’s flexible packaging laminating adhesives’ team within Arkema. This operation marks a step change for Bostik in the flexible packaging adhesives market and is a unique opportunity to position ourselves among the key partners for customers across the packaging industry” said Thierry Le Hénaff, Arkema’s Chairman and Chief Executive Officer.
Proceeds from the sale will support Dow's capital allocation priorities, including accelerating growth strategies and delivering long-term shareholder value. This sale, along with Dow's earlier acquisition of Circulus, a mechanical recycler, underscores Dow's commitment to aligning its portfolio with its growth strategy and circularity platforms. Dow retains its water-based laminating adhesives, acrylic adhesives, and adhesive solutions businesses, which remain core to its growth and sustainability strategies.
"We are pleased to announce the successful completion of this divestiture, a strategic move that aligns with Dow's long-term vision. This transaction not only strengthens our core business but also positions us for future growth and innovation," added Karen S. Carter, president of Packaging & Specialty Plastics at Dow. "By focusing on our key strengths, we can enhance our ability to deliver value to our customers and stakeholders."
