FTSE 250 speciality chemicals company Synthomer has reached an agreement to acquire its counterpart Omnova Solutions for £654m.
The deal values Omnova’s share capital at £375m.
Synthomer said the acquisition will expand the company’s reach worldwide and build a strong foundation for future growth.
Calum MacLean, Chief Executive of Synthomer, said in a statement: “This transaction is an important step in the continued execution of Synthomer’s strategy with an acquisition that is both strategically and financially compelling. The acquisition of OMNOVA represents an attractive opportunity to materially expand our international business into North America and expand our presence in Europe and Asia, creating a global speciality chemical company.
“I am delighted to welcome OMNOVA employees to the business and look forward to working with them to take the combined business to the next level. ”
Completion is expected to take place in late 2019/early 2020.