Omnova completes acquisition of Eliokem

ERJ staff report (DS)

Fairlawn, Ohio -- Omnova Solutions has completed its acquisition of speciality chemicals manufacturer Eliokem International from AXA Private Equity, for euro 227.5 million, before subtracting Eliokem's net debt and subject to working capital and capital expenditure adjustments. The Company expects the transaction to be neutral to slightly dilutive to earnings in 2011, but accretive in 2012.

Around 75 percent of Eliokem's sales are in product markets that Omnova has not previously served, but Eliokem's business model - including manufacturing process, key raw materials and go-to-market approach - is similar to Omnova's. Focusing on the same basic emulsion polymerisation process, the acquisition adds a number of new acrylic, styrene butadiene and nitrile chemistries and applications, including coating resins, elastomeric modifiers, antioxidants, specialty rubbers and reinforcing resins, as well as complementary products for oil field and specialty latex applications.

Omnova Solutions' Performance Chemicals business has been primarily a producer of styrene butadiene, acrylic and other latices and specialty chemicals used in coatings for high-end paper and packaging, carpet, durable and consumable nonwovens, tape and release coatings, floor polishes, construction, oil field, textile finishes, digital printing, graphic arts and other specialty applications.

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Press release from Omnova