Arkema completes acquisition of Dow's flexible packaging lamination adhesives business for $250 million
Arkema announces it has purchased one of the leading producers of flexible packaging adhesives, Dow's Flexible Packaging Laminating Adhesives Business. That acquisition will provide ample opportunities for Arkema to substantially enhance its flexible packaging offerings and consolidate its presence in this growing, potentially very profitable market.
The Dow business has annual revenues of $250 million and offers a huge range of value-added certified products for food and medical applications, as well as industrial lamination.
The acquisition will cement Bostic's existing commercial presence, product offering, and breadth of flexible packaging technologies. We will rapidly leverage our position to capture underlying growth and market recovery opportunities. The Group also expects to gain strong cost and product development synergies, which should yield some $30 million EBITDA after five years.
The acquisition will be completed at an enterprise value of approximately $150 million and will trigger an implementation cost or capital spend of about $50 million over the next three years.
Thierry Le Hénaff, chairman and CEO of Arkema, said, "We are delighted to welcome the Dow Flexible Packaging Laminating Adhesives team to Arkema. This acquisition is a major step for Bostic in the flexible packaging adhesives market, and it offers a unique opportunity for us to become a key partner to our customers across the whole packaging value chain."
