- The acquisition is valued at $150 million, around 10 times 2024F EBITDA.
- Expected synergies are around $30 million in EBITDA after 5 years.
- The deal includes five production sites in Italy, the US, and Mexico.
- The acquisition is expected to close in Q4 2024, pending antitrust approval.
Acquisition Overview
Arkema has agreed to acquire Dow’s flexible packaging laminating adhesives business, which generates annual sales of around $250 million. This acquisition will significantly expand Arkema’s portfolio in the flexible packaging market.
Market and Applications
Dow’s laminating adhesives business offers high-quality solutions for food, medical, and industrial applications, including window films and photovoltaic backsheets. The flexible packaging market is expected to grow at a rate above GDP, driven by the demand for sustainable and recyclable solutions.
Technological and Geographical Expansion
Dow’s business includes well-recognized brands such as ADCOTE™ and MOR-FREETM, and five production sites located in Italy, the United States, and Mexico. This acquisition will enhance Arkema’s technological capabilities and geographic presence in North America and Europe.
Financial and Strategic Impact
The acquisition is valued at $150 million, approximately 10 times the projected 2024 EBITDA. Arkema aims to achieve $30 million in EBITDA synergies within five years. The deal will also incur around $50 million in implementation costs or capital expenditures over the next three years.
Timeline and Approval
The acquisition is subject to approval from antitrust authorities and is expected to close in the fourth quarter of 2024.
