Arkema Completes Acquisition of Dow’s Flexible Packaging Laminating Adhesives Business

On December 2, 2024, Arkema finalized the acquisition of Dow's flexible packaging laminating adhesives business, a leading global producer of adhesives for the flexible packaging market. This strategic move significantly strengthens Arkema's position in the flexible packaging sector, enhancing its portfolio of high-quality solutions and positioning it as a key player in this growing market.

With annual sales of approximately $250 million, Dow's flexible packaging laminating adhesives business provides a diverse range of solutions catering to food, medical, and industrial applications. Known for its cutting-edge technologies and reputable brands, the business is a trusted name in the packaging industry. Its operations span five state-of-the-art production sites in the United States, Mexico, and Italy, with a strong presence in North America and Europe. The business employs 280 skilled professionals, further bolstering Arkema’s capabilities.

This acquisition complements Bostik’s existing expertise and commercial footprint in the flexible packaging market, aligning seamlessly with its growth ambitions. By leveraging the robust market recovery and underlying growth trends, Arkema aims to unlock new opportunities and rapidly expand its reach. The company expects to realize significant cost and development synergies, projected to add around $30 million to EBITDA within five years.

The transaction was completed at an enterprise value of $150 million, with implementation costs and capital expenditures of approximately $50 million anticipated over the next three years. The acquisition represents a valuable investment in Arkema’s long-term growth strategy.

Thierry Le Hénaff, Chairman and CEO of Arkema, expressed enthusiasm for the deal, stating, "We are delighted to welcome Dow’s flexible packaging laminating adhesives team to Arkema. This acquisition marks a transformative step for Bostik in the flexible packaging adhesives market and positions us as a preferred partner for customers across the packaging industry."

By incorporating Dow's advanced technologies and extensive expertise, Arkema aims to deliver innovative solutions, capitalize on emerging market opportunities, and strengthen its position as a leader in the packaging adhesives space. This acquisition underscores Arkema's commitment to expanding its high-value-added offerings and driving sustainable growth in its core markets.

Arkema leverages its exceptional expertise in materials science to deliver a portfolio of advanced technologies that meet the growing demand for innovative and sustainable materials. With a clear ambition to establish itself as a pure player in Specialty Materials, the Group is organized into three complementary and highly innovative segments: Adhesive Solutions, Advanced Materials, and Coating Solutions. Together, these segments represented approximately 92% of Arkema’s total sales in 2023. Additionally, the company maintains a well-positioned and competitive Intermediates segment.

Arkema provides cutting-edge solutions to address critical global challenges, including renewable energy, water access, recycling, urbanization, and sustainable mobility. By fostering ongoing dialogue with its stakeholders, the Group ensures its solutions align with evolving societal needs.