Arkema Adds Japanese Adhesives
Arkema is boosting its presence in the Japanese adhesives market with the proposed acquisition of Nitta-Gelatin’s industrial business as well as the construction of a new plant.
The Bostik-Nitta joint venture, which is majority owned by Arkema’s specialty adhesives business Bostik, will buy Nitta-Gelatin’s industrial adhesives for an undisclosed sum. Arkema said the acquisition, which represents sales of around €30 million, will step up industrial adhesive development in fast-growing markets such as electronics and automotive.
The deal is expected to close this summer, subject to antitrust approval.
Separately, Bostik-Nitta will build an adhesives plant in Nara, Japan, to consist of several production lines. Some of the lines will be dedicated to adhesives for the nonwoven market for hygiene applications while the others will be focused on industrial adhesives applications, such as packaging, labeling, transportation and electronics. The facility is expected to go on stream in early 2020. Production capacity was not disclosed.
The Paris-headquartered group said the moves are part of its strategy to develop its adhesives business, which is one of the major drivers of its long-term growth. Bostik has been on an acquisition trail in recent years as Arkema is targeting its adhesives subsidiary to exceed one third of group sales by 2023.
On Jan. 2, Bostik completed the purchase of XL Brands, a leading US producer of floor covering adhesives, for an enterprise value of $205 million. In May 2017, Bostik bought CMP Specialty Products, the flooring and floor preparation business of US-based CGM.
