Arkema to buy some of Total's specialty chemicals businesses
Arkema plans to buy the coatings resins (Cray Valley and Cook Composite Polymers) and photocure resins (Sartomer) businesses of Total’s Specialty Chemicals section for a €550M enterprise value. Fully in line with its strategy to bolster its specialty product activities, this project would establish Arkema as a leader in the global coatings resins market. It would further increase the downstream integration of its acrylics chain, while offering major potential for growth and synergies.
The businesses concerned by the project comprise the coatings resins of Cray Valley (Europe, Asia, South Africa) and Cook Composite Polymers (US), as well as the photocure resins of Sartomer (Europe, US, Asia). These make up a coherent group of specialty products used in the high value-added paints and industrial coatings markets.
With growing sales of approximately €850M, and almost 1750 employees on some twenty sites around the world, these activities would enhance Arkema’s current position on these markets: emulsions, rheology additives, fluorinated polymers and copolymers.
In particular, this project would provide Arkema with new growth drivers in Asia. Arkema would be able to draw on Cray Valley’s facilities in the region (India, Malaysia) and on the strong potential of Sartomer’s newly opened plant near Canton, China.
This proposed acquisition could bolster Arkema’s downstream acrylics activities as a logical follow-up to the acquisition of Coatex in 2007 and to the acquisition of the emulsions purchased from Dow in North America at the beginning of 2010. The acrylic downstream integration would reach 40%. The deal should be closed in the 1st half of 2011.
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