PETALING JAYA: Petronas Chemicals Group Bhd (PetChem) has signed a securities purchase agreement to acquire the entire equity interest in Perstorp Holding AB, a sustainability-driven global specialty chemicals company for €1.54 billion (RM7.02 billion).
The agreement was signed with Financière Forêt S.à.r.l, a company under European private equity firm PAI Partners. The acquisition values Perstorp group at an enterprise value of €2.3 billion.
Perstorp is a specialty chemicals company that develops sustainable solutions, with seven manufacturing sites and three R&D centres worldwide. It has presence in 26 countries including the US, Europe and Asia Pacific. In FY2021, Perstorp recorded €1.33 billion in revenue and €248 million in ebitda with an ebitda margin of 18.6%.
PetChem managing director and CEO Mohd Yusri Mohamed Yusof said the acquisition is a major milestone for PetChem in establishing a key platform to diversify into the specialty chemical industry and capture new growth opportunities, while enabling it to future proof its business against market cyclicality and volatility.
“Perstorp is a strategic fit for PetChem and enables us to participate in attractive end-markets such as paints & coatings, construction, automotive, personal care and animal nutrition that share a robust growth outlook. This acquisition will also provide PetChem with critical talent, know-how, technological platforms and proven customer channels to address the pressing needs of the market for more sustainable solutions.”
He said Perstorp has an expansive range of products, established customer base and is a market leader in selected chemicals, which are complementary to PetChem.
“Perstorp will add up to 2.3 million tonnes per annum (mtpa) to (PetChem’s) production capacity and contribute about 28% incremental revenue to the group based on 2021 results as well as support the group’s medium-term goal of establishing 30% revenue generated from non-traditional businesses by 2030.
“With Perstorp’s holistic and innovative approach to reduce environmental impact in line with (PetChem’s) aim for positive environmental and social contributions, we are confident that together we can accelerate our sustainability journey towards circular economy and carbon neutrality by 2050.”
Perstorp president and CEO Jan Secher said by tapping into the Petronas strong global brand and PetChem’s strength as a reputable industry and market leader in the Asia Pacific region, it is confident that Perstorp can continue to expand into its next phase of growth.
The completion of the acquisition is subject to relevant regulatory and shareholders’ approvals.