Arkema acquires Dow packaging adhesives business

Arkema agreed to acquire Dow Chemical's flexible packaging lamination adhesives business, a leading producer in this market with annual sales of approximately $250 million (€233 million). The acquisition will expand Arkema’s portfolio of flexible packaging solutions, making the group a key player in the industry.

Dow's flexible packaging lamination adhesives business provides high-quality solutions for food, medical applications and industrial lamination. The flexible packaging market is expected to grow, driven by demand for sustainable and recyclable solutions. Dow's laminating adhesives business, with its cutting-edge technology and well-known brands such as Adcote and Mor-Free, is a key player in the packaging industry in North America and Europe.

"We are very pleased to announce this great acquisition, which is fully in line with Arkema's strategy to offer its customers innovative products with a high technological content and to continue its development in the attractive adhesives segment. It will enable the group and Bostik to expand their commercial and geographical presence in the packaging sector and complete their product range in this demanding and fast-growing market, especially with regard to sustainability challenges. We are very pleased to welcome the Dow Chemical team into this new stage of development,” commented Thierry Le Hénaff, Chairman and CEO of Arkema.

Arkema plans to capitalize on market growth and recovery, seize new opportunities and realize cost and development synergies. The proposed acquisition is in line with the group's strategy to expand into advanced technologies and growing markets. Dow's flexible packaging lamination adhesives business is worth $150 million (€140 million), about 10 times 2024 EBITDA, and will incur about $50 million (€46 million) in implementation costs or capital expenditures over the next three years.

The project, which is subject to approval from certain antitrust authorities, is expected to be completed in the fourth quarter of 2024.