Arkema said Dec. 2 it has finalized the acquisition of Dow’s $250 million flexible packaging laminating adhesives business.
The acquired business will operate under the French chemical company’s Bostik adhesive solutions segment, said Tim Pione, Bostik’s vice president of advanced packaging and converting, adhesives.
Bostik also will acquire the business unit’s innovation and application technology centers.
“These centers, combined with our existing labs, strengthen our capabilities and allow us to better support customers’ goals for improved performance, streamlined processing efficiencies and enhanced sustainability,” said Pione in a Q&A on the company’s website.
“Additionally, this acquisition allows Bostik to become a full-range, flexible materials supplier. This means the market will be able to access their adhesives and coatings for across application needs from one place, which streamlines logistics and reduces complexities for them.”
Pione added that combining the acquired unit’s resources will help Bostik provide a competitive cost structure.
Arkema expects the resulting development synergies to represent around $30 million in EBITDA after 5 years. This acquisition is based on an enterprise value of $150 million and will trigger around $50 million of implementation costs or capex over the next three years.
