Arkema, a global specialty chemicals company, has reached an agreement to acquire Dow’s flexible packaging laminating adhesives business, a move set to bolster Arkema’s presence in the flexible packaging market. The acquisition, valued at US$150 million, encompasses a business generating approximately US$250 million in annual sales for Dow.
“The proposed acquisition will significantly expand Arkema’s portfolio of solutions for flexible packaging, enabling the Group to become a key player in this attractive market,” stated Arkema in a press release.
The flexible packaging laminating adhesives business of Dow is recognized for its diverse range of high-quality solutions catering to food, medical, and industrial applications. With brands like ADCOTE™ and MOR-FREETM, along with five advanced production sites across Italy, the United States, and Mexico, Dow has established itself as a key player in the packaging industry, particularly in North America and Europe.
“We are very happy to announce this great acquisition which is perfectly in line with Arkema’s strategy to offer its customers innovative products with high technological content and continue to grow in the attractive adhesives segment,” said Thierry Le Hénaff, Arkema’s Chairman and Chief Executive Officer.
This acquisition is poised to significantly enhance Arkema’s portfolio in flexible packaging solutions. Combined with Bostik’s existing offerings and commercial presence, it positions Arkema to emerge as a notable global partner for customers in the packaging sector.
Le Hénaff expressed enthusiasm about the acquisition, emphasizing its alignment with Arkema’s strategic vision of offering innovative, technologically advanced products to customers. He highlighted the potential for broadening commercial reach and geographic presence, particularly in addressing sustainability challenges within the packaging market.
The proposed acquisition is expected to generate synergies, aiming for approximately US$30 million in EBITDA over five years. While Arkema anticipates around US$50 million in implementation costs or capital expenditure in the next three years, the move aligns with the company’s overarching strategy of expanding into high-growth markets and advanced technologies, particularly within its Adhesive Solutions segment.