Synthomer to buy Adhesive Technologies for $1bn

Synthomer has agreed to buy Adhesive Technologies - the Adhesive Resins business of Eastman Chemical Company - for $1bn (£728m) in cash.

The deal will be financed through an equity placing to raise around £200m ($275m), existing cash and a new $300m debt facility.

Synthomer said on Thursday that the deal will bring "significant benefits", including well-invested assets with a global leading position in adhesives, six plants with strong Safety, Health & Environment standards and a strong R&D track record, among other things.

Chief executive Calum MacLean said: "Alongside the diversification of our portfolio, end-markets and geographies, our acquisition strategy looks to add new and highly complementary growth opportunities to Synthomer's global portfolio. Adhesive Technologies delivers on that ambition, giving us a leading position in the growing global adhesives market and extending our portfolio of differentiated products and sustainable solutions.

"The business is well-invested, with six manufacturing facilities, a highly skilled and experienced workforce and has a compelling R&D track record and strong innovation pipeline which will deliver meaningful revenue growth over the next few years. It is a business that we have long-admired, and I am confident that the combination of Synthomer and Adhesive Technologies will drive meaningful value for all stakeholders in the years ahead."

At 0915 BST, the shares were up 3.6% at 491.17p.