On Thursday, OMNOVA Solutions announced that it had completed its acquisition of specialty chemicals manufacturer Eliokem International from AXA Private Equity. OMNOVA paid 227.5 million euros for ELIOKEM, or approximately US$302 million at current exchange rates, before subtracting ELIOKEM’s net debt and subject to working capital and capital expenditure adjustments. The deal creates a specialty chemicals company with $1.1 billion in annual sales, with more than 40% of sales outside of the United States.
While 75% of ELIOKEM’s sales are in product markets that OMNOVA has not previously served, ELIOKEM’s business model – including manufacturing process, key raw materials and go-to-market approach – is very similar to OMNOVA’s. Focusing on the same basic emulsion polymerization 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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