"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,” said CEO Michael Willome.

The laminates, films and coated fabrics businesses were acquired as part of the takeover of Omnova Solutions in April 2020. The laminates business provides functional and decorative surfaces for residential, commercial and transportation end-markets in North America, while coated fabrics are supplied for premium applications across Southeast Asian OEM automotive and motorcycle and North American commercial, marine and transport seating end-markets. In total, both businesses contributed EBITDA of $33 million in 2021 and employ around 800 people.

The transaction, which remains subject to regulatory approvals and the usual conditions, is expected to close during the first quarter of 2023.

Synthomer announced in October that it was moving to a new divisional structure from Jan. 1, 2023, in line with its aspiration to become a specialty chemicals company. Under the new alignment, there will be three divisions – Coatings & Construction Solutions, Adhesive Solutions, and Health, Protection and Performance Materials.

Willome said focusing on these attractive end-markets will enable the company to prioritize, allocate resources accordingly and build a culture of excellence.

On Apr. 1, Synthomer completed its $1 billion purchase of Eastman’s adhesive resins business. That business is now the Adhesives Technologies division, which Synthomer said it plans to expand significantly.

Author: Elaine Burridge, Freelance Journalist