FRANCE – Arkema, a specialty materials company, has announced its acquisition of Dow, a material science company, for US$150 million of the flexible packaging laminating adhesives business.
This business, previously a part of Dow’s Packaging and Specialty Plastics segment, specializes in a variety of applications, including food and medical, as well as industrial lamination, offering products under well-known brands such as ADCOTE and MOR-FREE across North America and Europe with production facilities in Italy, the USA, and Mexico.
Dow highlighted that this sale aligns with its strategy to concentrate on its core, high-value downstream businesses. This will enhance the company’s capital allocation strategy and boost growth and shareholder value.
However, Dow will retain its water-based and acrylic adhesives businesses within the same segment and continue to provide adhesive solutions through its Dow Consumer Solutions and MobilityScience platforms.
Jim Fitterling, Dow’s chairman and CEO, commented on the strategic rationale behind the divestiture: “With a focus on optimizing our asset portfolio, this transaction allows us to invest in businesses that have strong competitive positions in attractive markets.
“The proceeds from this sale will support our long-term strategies, Decarbonize & Grow and Transform the Waste, which are expected to deliver over $3 billion in annual earnings growth by 2030.”
Five Dow manufacturing sites that produce solvent-based and solventless laminating adhesives and heat seal coatings will be transferred to Arkema as part of the agreement. This move will significantly enhance Arkema’s portfolio of flexible packaging solutions.
Thierry Le Hénaff, Arkema’s chairman and CEO, expressed enthusiasm about the acquisition: “This acquisition is perfectly aligned with Arkema’s strategy to enhance our product offerings with high technological content and expand our presence in the adhesives segment.
“It will broaden Bostik’s commercial and geographic reach in the packaging sector and enhance our capabilities in addressing the rapidly evolving market demands, particularly those related to sustainable development.”
The transaction is expected to close by the end of this year, pending regulatory approvals.
This acquisition follows Arkema’s purchase of Permoseal in 2022. Permoseal is a leader in adhesive solutions for DIY, packaging, and construction in South Africa.
Permoseal, known for its strong retail presence and annual sales of US$44.59 million in 2021, operates two production plants in South Africa, further strengthening Arkema’s positions in South Africa and the broader Sub-Saharan Africa market.
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