- Arkema acquires Dow's flexible packaging adhesives business for $150 million.
- The business generates $250 million in annual sales and employs 280 people.
- Expected synergies are $30 million in EBITDA after 5 years.
- Implementation costs or capex will be around $50 million over the next three years.
Acquisition Overview
Arkema has completed the acquisition of Dow's flexible packaging laminating adhesives business, a leading global producer in the flexible packaging market. This strategic move allows Arkema to significantly enhance its portfolio and establish a stronger presence in this growing sector.
Business Details
The acquired business generates approximately $250 million in annual sales and provides a wide range of high-quality solutions for food, medical, and industrial applications. It operates five advanced production sites located in Italy, the United States, and Mexico, employing 280 people.
Financial Aspects
The acquisition is valued at $150 million, with anticipated implementation costs or capital expenditures of around $50 million over the next three years. Arkema expects to achieve $30 million in EBITDA synergies within five years, driven by cost efficiencies and development opportunities.
Strategic Impact
This acquisition allows Arkema's subsidiary, Bostik, to complement its existing commercial presence and expand its product offerings in the flexible packaging market. The integration of Dow's business is expected to provide new growth opportunities and strengthen Arkema's position as a key partner in the packaging industry.
