Essex, UK - Synthomer plc has agreed to sell its dispersions business in South Africa to Ferro SA for £13 million (€16.5 million), the company announced 20 March.
In 2015, the business had a turnover of Rand 445 million (€26 million) and generated earnings (EBITDA) of Rand 37 million. The sale is expected to complete this summer following receipt of regulatory approvals.
According to Synthomer, the decision to dispose of the business was due to declining earnings and cash flow performance in “a competitive market”.
Also, the company cited “requirement for ongoing investment in the assets and the increasingly challenging environment” as part of the reason for the selling of the business.
Synthomer is a UK-based speciality chemicals company.