Arkema has reached an agreement to acquire Dow’s flexible packaging laminating adhesives business, a major player in the adhesives sector for flexible packaging, with an annual revenue of approximately US$250 million. This strategic move is poised to significantly enhance Arkema’s offerings in flexible packaging, positioning the company as a prominent participant in this dynamic market.
Dow’s flexible packaging laminating adhesives business is renowned for its diverse range of top-notch solutions, particularly in food and medical applications where flexible packaging offers superior efficiency. Additionally, it serves industrial lamination needs such as window films and photovoltaic backsheets. With advanced technologies and well-established brands like ADCOTE™ and MOR-FREETM, Dow’s laminating adhesives business operates from five cutting-edge production sites across Italy, the United States, and Mexico, firmly establishing its presence in North America and Europe.
This acquisition, in conjunction with Bostik’s existing strengths in the flexible packaging arena, presents a transformative opportunity for Bostik to fortify its position in the market. By leveraging synergies in commercial reach, product offerings, and technological prowess, Bostik aims to emerge as a key global partner for customers in the packaging industry.
Arkema anticipates not only capitalizing on the projected growth of the flexible packaging market but also tapping into emerging sustainable and recyclable solutions. Through this acquisition, Arkema targets substantial cost and development synergies, projecting approximately US$30 million in EBITDA over the next five years.
Aligned with its strategic objectives of expanding into high-growth markets and superior technologies, this acquisition underscores Arkema’s commitment to bolstering its Adhesive Solutions segment. With an enterprise value of US$150 million (roughly 10 times 2024F EBITDA), the acquisition is expected to incur implementation costs or capex of around US$50 million over the next three years.
Thierry Le Hénaff, Chairman and CEO of Arkema, expressed enthusiasm for the acquisition, emphasizing its alignment with the company’s vision of offering innovative, technologically advanced products to customers. He highlighted the strategic significance of expanding into the adhesives segment and reiterated Arkema’s commitment to addressing the evolving needs of the packaging industry, particularly in the realm of sustainable development. Le Hénaff extended a warm welcome to Dow’s teams, signaling a new chapter of growth and collaboration for both companies.
