Total receives offer from Arkema for its Bostik adhesives affiliate
Total has received an offer from the French group Arkema, one of the world’s major players in specialty chemicals, to acquire its Bostik affiliate, a global adhesives company.
Arkema’s offer values Bostik (wholly owned by Total) at €1.74 billion (around $2.25 billion), representing 11 times the company’s EBITDA.
In light of the quality of the project, Total has granted Arkema an exclusivity period to pursue the offer, and it will be presented to the relevant employee representatives, as part of the required information and consultation procedures.
An international player and France’s leading chemicals company, Arkema is aiming to become a world leader in specialty chemicals. Its growth strategy is based on innovation, an increased presence in emerging markets and targeted acquisitions in new activities.
“Joining France’s leading chemicals company would give Bostik the resources it needs to pursue its industrial and commercial development while fulfilling its commitments to employees and partners,” commented Patrick Pouyanné, President of Total’s Refining & Chemicals. “A combination of Bostik and Arkema – which was the result of a successful spin-off from Total in 2006 – is a natural next step, given their shared history within our group. Total is pleased to be able to contribute to Arkema’s continued development in this way.”
Arkema’s offer for Bostik includes clear undertakings to continue operations sustainably and safeguard existing jobs and employee benefits.
The proposed transaction is subject to approval by the relevant antitrust authorities.
In 2013, Bostik reported revenue of €1.5 billion
In 2013, Arkema reported revenue of €6.1 billion.