Polymer dispersions and synthetic latex specialist Synthomer (London / UK; www.synthomer.com) has entered into a definitive agreement to acquire speciality chemicals and additives manufacturer Omnova Solutions (Fairlawn, Ohio / USA; www.omnova.com) with an enterprise value of GBP 654m (EUR 730m). The UK company plans to purchase in an all-cash transaction all outstanding common shares of Omnova for USD 10.15 (around EUR 9.05) per share. Following regulatory approval and closing conditions, the acquisition is expected to complete in late 2019 or early 2020.

Synthomer CEO Calum MacLean said the buy is to strengthen business in North America, where Omnova has multiple plants. Its portfolio is also growing, with the addition of the oil and gas industry and cement production. The CEO also sees synergies of approximately USD 30m per year from 2022.

Omnova employs around 1,900 people at 13 locations in Europe, Asia and the US and generated revenue of USD 760m in fiscal 2018/19 (ending 31 May). Its product line includes plastic films and speciality chemicals for various sectors such as the automotive, construction, oil and gas industries.

Synthomer employs approximately 2,900 people at 25 sites and generated sales of USD 2.1 bn in fiscal 2018. The company specialises in manufacturing synthetic latex, but also speciality chemicals for the construction and textile industries and foams.

In 2018, Synthomer was part of EU investigations into suspected antitrust violations involving styrene purchasers – see Plasteurope.com of 11.06.2018. The UK company was one of the few that admitted that the unannounced EU inspections took place at its offices. Nothing further is known about the outcome of the process or whether a penalty was imposed.