Arkema proposes to buy Total's adhesive company Bostik for Euro 1.74 bn

The France-based specialty chemicals maker Arkema has proposed to acquire Bostik, world’s third largest adhesives manufacturer and part of Total’s specialty chemicals business, for total enterprise value of Euro 1.74 billion (11 times EBITDA). The acquisition, if accepted, will reinforce Arkema’s profile with the integration of a low cyclical and low capital-intensive activity with sales of Euro 1.53 billion.
 
Thierry Le Henaff, Chairman and Chief Executive Officer, Arkema, said, “Since 2006 Arkema has carried through a successful in-depth transformation of its business portfolio with the aim of becoming a world leader in specialty chemicals. The proposed acquisition of Bostik represents a new major milestone towards this ambition. The complementarities between the two companies, the quality of Bostik’s management and teams, the common roots within the Total group, and the brands and technologies are all factors that will sustain value creation for our shareholders and ensure successful execution of the project.”
 
The Bostik acquisition proposal is also in line with Arkema’s strategic priorities to strengthen its innovative product portfolio and expands in emerging countries.
 
Henaff added, “For Arkema, this new exciting challenge complements the ambitious plan currently in progress to establish acrylics and thiochemicals in Asia through the Jurong and Kerteh projects, restore the profitability of fluorogases, carry through its Euro 100 million savings plan announced recently, and realise the strong growth prospects in the attractive oil and gas segment.”