Synthomer PLC Acquisition of OMNOVA receives EC clearance (9271Z)
January 15 2020 - 8:21AM
UK Regulatory
TIDMSYNT
RNS Number : 9271Z
Synthomer PLC
15 January 2020
15 January 2020
Synthomer receives European Commission clearance for OMNOVA
acquisition
Synthomer plc ("Synthomer" or the "Company") today received
conditional clearance from the European Commission regarding its
proposed acquisition of OMNOVA Solutions Inc ("OMNOVA").
Following its Phase 1 investigation, the European Commission
concluded that the transaction, as modified by the commitments
offered by Synthomer, does not raise any competition concerns. The
commitments require divestment of Synthomer's small VP Latex
business in Germany. The VP Latex business represented less than
0.5% of Synthomer's 2018 sales volume. Whilst financially
immaterial, the sale process must be finalised prior to the closing
of Synthomer's acquisition of OMNOVA. This represents a structural
remedy offered by Synthomer to address any concerns regarding the
overlap between the two companies' VP Latex operations.
Synthomer has already received a number of expressions of
interest for this business and will now proceed with the sale
process, with completion of the acquisition of OMNOVA expected late
Q1 2020. The transaction also remains subject to regulatory
approval from the Turkish authorities, which is expected to be
received early in February.
Calum MacLean, Chief Executive of Synthomer, commented:
"We are pleased to have received European Commission clearance
for the acquisition of OMNOVA but note the structural remedy
required to divest our small VP Latex business in Germany. The
acquisition of OMNOVA is strategically and financially compelling.
It will materially expand our international business into North
America, and grow our presence in Europe and Asia, as well as
provide an attractive financial profile with significant expected
synergy benefits. We are now working on the divestment as quickly
as possible, which will enable us to conclude the OMNOVA
acquisition and focus on taking the combined business to the next
level."
- Ends -
Enquiries:
Calum MacLean, Chief Executive Officer Tel: + 44 1279 436211
Stephen Bennett, Chief Financial Officer
Tim Hughes, President - Corporate
Development
Charles Armitstead, Teneo Tel: + 44 7703 330 269
Matthew Denham, Teneo Tel: + 44 7825 735 596
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END
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