Business
Proposed Sale of Laminates, Films & Coated Fabrics
Proposed Sale of Laminates, Films & Coated Fabrics.
About this update from Synthomer Plc
[{"type":"text","content":"\n \n \n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION\n \n \n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \n \n \n \n For immediate release\n \n \n \n \n 13\n \n \n December 2022\n \n \n \n \n SYNTHOMER PLC\n \n \n \n \n Proposed sale of the Laminates, Films and Coated Fabrics Businesses\n \n \n \n Synthomer plc (\"Synthomer\" or the \"Company\" and, together with its subsidiaries, the \"Group\"), today announces it has agreed to the sale of its laminates, films and coated fabrics businesses (the \"Laminates, Films and Coated Fabrics Businesses\") to Surteco North America, Inc. (the \"Purchaser\") (the \"Proposed Transaction\") for a total enterprise value of approximately US$255 million (£208 million).\n \n \n \n Transaction highlights\n \n \n \n \n \n \n \n •\n \n \n \n \n Agreement to sell the Laminates, Films and Coated Fabrics Businesses to\n the Purchaser for a total enterprise value of US$255 million (£208 million). The net proceeds arising from the Proposed Transaction are expected to be approximately US$245 million (£199 million) (the \"Net Proceeds\")\n \n \n \n \n \n \n •\n \n \n \n \n The consideration implies an EV/EBITDA multiple of approximately\n 8 times\n based on the EBITDA for the 12-month period ended 31 December 2021, which\n compares favourably\n with the post-synergy acquisition multiple of approximately\n 7 times\n achieved in connection with the OMNOVA acquisition in April 2020\n \n \n \n \n \n \n •\n \n \n \n \n The Net Proceeds will be used to repay certain indebtedness in order to strengthen the Group's balance sheet and support a reduction in leverage towards the Company's target range of 1 to 2 times Net Debt to EBITDA over the medium term\n \n \n \n \n \n \n •\n \n \n \n \n The Proposed Transaction is in line with Synthomer's strategy\n as set out at the Capital Markets Day in October\n to increase the specialty weighting of its portfolio through the sale of identified non-core assets\n \n \n \n \n \n \n \n Expected timetable\n \n \n \n \n \n \n \n •\n \n \n \n \n The Proposed Transaction constitutes a Class 1 transaction for the purposes of the Listing Rules, and therefore requires the approval of Synthom...