Synthomer shares surge after deal to sell laminates business for £208m

Synthomer shares surged on Tuesday as the company sold its laminates, films and coated fabrics businesses to Surteco North America for $255m (£208m), with the proceeds going towards debt reduction.

The cash will be used to to strengthen the group's balance sheet and support a reduction in leverage, the company said.

"This divestment is consistent with our recently announced strategy to increase the specialty weighting of our portfolio and focus on higher value, higher growth markets where we have strong and sustainable leadership positions," said chief executive Michael Willome.

"The proceeds represent excellent value for our shareholders and the transaction is a significant step in the deleveraging of the group."

Reporting by Frank Prenesti for Sharecast.com