Tuesday, April 7, 2020
Synthomer UK recently announced that it has completed its acquisition of US based OMNOVA Solutions Inc (‘OMNOVA’) and strengthens its position in the American market. Now with this acquisition Synthomer’ will have a strong presence in North America, as well as increases its presence in Europe and Asia, including further penetration into the high growth Chinese market. Synthomer becomes a major world-wide player in water-based polymer solutions with greater customer reach and strong operational capabilities and will be in a stronger position to invest in growth, innovation, and people.
Omnova is a US based specialty chemical company which develops, manufactures and markets emulsion polymers, speciality chemicals and decorative products and provide engineered surfaces for various commercial, industrial and residential end uses. On completion of the acquisition of Omnova, Synthomer will strengthen further its position as a major global player in water-based polymer solutions, with best-in-class process technology and a strong R&D platform with global geographic coverage and increased customer proximity. On this acquisition, Calum MacLean, CEO of Synthomer said, “I am very grateful to everyone who has helped us complete our acquisition of OMNOVA in a relatively short time frame following the initial announcement of the transaction at the start of July. Synthomer now has global reach, a broader product portfolio and increased R&D capabilities with an exciting platform from which to attract talent and invest in future growth. We have already made strong progress to bring our businesses and I look forward to working closely with new colleagues around the world to take Synthomer forward.”
Synthomer intends to utilise best practices from across the enlarged Group to improve productivity and service. The acquisition is expected to result in estimated recurring run-rate pre-tax cost synergies of US$29.6 million per annum by the end of the third year following completion. The acquisition is expected to be earnings accretive in the first full financial year following completion and strongly accretive thereafter. OMNOVA will be integrated into Synthomer accounts with immediate effect.
Tags: acquisition, OMNOVA, polymer solutions, Synthomer, USA, wood based panels, woodworking and manufacturing
