30.06.2023 • NewsArkemaAshlandadhesives

Arkema Takes Majority Stake in PI Advanced Materials

French specialty chemicals company Arkema plans to acquire the 54% majority stake held by Glenwood Private Equity in South Korea-listed PI Advanced Materials (PIAM) for €728 million and fully consolidate the holding. The remaining 46% of equity will continue to be listed in South Korea.

The all-cash deal, which CEO Thierry Le Hénaff said will accelerate Arkema’s drive to become a pure-play specialty materials player, is expected to complete by the end of this year following approval by Chinese and Korean antitrust authorities.

The Paris-based chemical company expects the transaction to deliver “significant pre-tax synergies” of an estimated €30 million at the EBITDA level, which it said “should be progressively achieved within the next five years with a limited requirement for additional capital expenditure.”

Le Hénaff said the purchase of the acknowledged global leader in high-margin polyimide films for flexible printed circuit boards and graphite sheets for mobile devices as well as electric vehicles with a market share of 30% will strengthen Arkema’s Advanced Materials segment following the divestment of the PMMA activities, the acquisition of Ashland adhesives and the start-up of the company’s bio PA 11 plant in Singapore.

Handling in the battery laboratory at CRRA Research staff © Alexis Cheziere /...
Handling in the battery laboratory at CRRA Research staff © Alexis Cheziere / ARKEMA

In addition, acquiring an Asian player with “unique technological positioning, state of the art manufacturing facilities and invaluable customer relationships “ is fully aligned with the French player’s strategy to be at the forefront of high performance materials for high growth end-markets supported by megatrends such as electric vehicles and advanced electronics, the CEO added.

PIAM last reported sales growth of 12% to more than €200 million, despite destocking in the consumer electronics market, and an EBITDA margin of around 30%.

Backed by a capital spending program of around €100 million, analysts expect the high-end plastics maker’s sales to grow at a rate of 13% annually, driven by growth applications such as lithium-ion batteries, 5G antennas, high resolution OLED displays or flexible screens and supported by recent capacity expansions.

Author: Dede Williams, Freelance Journalist

Interview

Fostering Innovation and Collaboration
Specialty Chemicals Distributor IMCD’s Strategy

Fostering Innovation and Collaboration

Valerie Diele-Braun, CEO of IMCD, shares her vision for sustainability, global expansions, and strategic direction in an exclusive CHEManager International interview.

Whitepaper

Excellence in Pharmaceutical Distribution and The Critical Role of Good Distribution Practice (GDP)
Setting the Standard

Excellence in Pharmaceutical Distribution and The Critical Role of Good Distribution Practice (GDP)

Are you ready to elevate your pharmaceutical operations? Download our exclusive whitepaper and discover how compliance with Good Distribution Practice (GDP) is essential for the safety and integrity of pharmaceuticals.