Synthomer divesting latex compounding operations

London – Synthomer plc has announced plans to sell its latex compounding operations to Belgian chemicals company Matco NV. 

The two sides have agreed on a transaction value of €27.5 million, announced London-based Synthomer 15 April.

Headquartered in Waregem, Belgium, Matco specialises in compounds, water-based adhesives, and solutions for various industrial applications.

The to-be-sold business is part of Synthomer's ‘health & protection and performance materials division’ and was designated as "non-core" to the group in October 2022.

The unit produces certain latex-based compounds and curing additives used in the manufacture of products for a range of end-markets including flooring and artificial grass.

The business comprises two manufacturing sites: one in The Netherlands the other in Egypt, according to Synthomer

Last year, the business generated stand-alone adjusted earnings (EBITDA) of €4.8 million and had gross assets at the end of the period of €56 million.

The transaction is conditional on customary closing conditions and is expected to complete over the next month with consideration payable on completion.

Synthomer said it will use the proceeds of the divestment to reduce group net debt.

The divestment is consistent with group strategy to increase “the speciality weighting of the group” and reduce complexity of its site portfolio, said Synthomer CEO Michael Willome.

The UK group also aims to enhance its focus on “higher value and higher growth markets” where it has “strong and sustainable leadership positions.” Willome added.