Synthomer Divests Latex Compounding Operations for €27.5 Million

On April 15, 2024, Synthomer plc ("Synthomer" or "the Group") disclosed an agreement to divest its latex compounding operations, referred to as "the Compounds business," to Matco NV, a leading Belgian company known for its expertise in compounds, water-based adhesives, and solutions catering to diverse industrial applications. The transaction is valued at approximately €27.5 million. The Compounds business, a part of Synthomer's Health & Protection and Performance Materials division, was identified as non-core to the Group as part of the strategy update unveiled in October 2022. It manufactures specific latex-based compounds and curing additives utilized in the production of various products for multiple end markets, including flooring and artificial grass. The business operates two manufacturing facilities in the Netherlands and one in Egypt.

In the fiscal year ending on December 31, 2023, the Compounds business generated stand-alone adjusted EBITDA of €4.8 million and had gross assets totaling €56 million at the end of the period. The completion of the transaction, subject to customary closing conditions, is anticipated within the next month, with consideration to be paid upon completion. The proceeds from the divestment will be utilized to reduce the Group's net debt.

Synthomer CEO Michael Willome commented on the divestment, stating: "This divestment aligns with our strategy to increase the specialty weighting of the Group, simplify our site portfolio, and concentrate on higher value, higher growth markets where we hold robust and sustainable leadership positions. I extend my gratitude to those colleagues departing from Synthomer and wish them success in their future endeavors."

Synthomer plc stands as a prominent supplier of high-performance, highly specialized polymers and ingredients crucial to key sectors such as coatings, construction, adhesives, and health and protection. These sectors cater to billions of end users worldwide, embodying growing markets of paramount importance. Headquartered in London, UK, and publicly listed since 1971, Synthomer operate with a workforce of approximately 4,200 employees across four innovation centers of excellence and over 30 manufacturing sites spanning Europe, North America, and Asia. With a continuing revenue of £2.0 billion in 2023 and a clientele base exceeding 6,000 blue-chip customers, comopany’s business revolves around three divisions. These divisions cater to customers in lucrative end markets driven by global megatrends like urbanization, demographic shifts, climate change and sustainability, and evolving economic dynamics. 

In the Coatings & Construction Solutions division, our specialized polymers bolster the sustainability and performance of diverse coatings and construction products. The company caters to a diverse array of applications, encompassing architectural and masonry coatings, mortar modification, waterproofing and flooring, fiber bonding, as well as energy solutions. Within the Adhesive Solutions division, company’s products facilitate bonding, surface modification, and compatibilization for various applications such as tapes and labels, packaging, hygiene, tires, and plastic modification. These enhancements enhance permeability, strength, elasticity, damping, dispersion, and grip. In the Health & Protection and Performance Materials division, company lead as a global supplier of water-based polymers for medical gloves and a significant European manufacturer of high-performance binders, foams, and other products serving a wide range of end markets.