Arkema completes acquisition of Dow’s Flexible Packaging Laminating Adhesives business

Arkema has completed the acquisition of Dow’s Flexible Packaging Laminating Adhesives business, one of the world’s leading producers of flexible packaging adhesives. The acquisition will allow the Group to significantly expand its portfolio of flexible packaging solutions and become a key player in this attractive market.

With annual sales of approximately $250 million, Dow’s Flexible Packaging Laminating Adhesives business offers a broad range of high-quality solutions for food and medical applications as well as industrial lamination.

The acquisition will allow Bostik to perfectly complement its existing commercial presence, product offering and breadth of flexible packaging technologies. In addition to benefiting from underlying growth and market recovery, the Group aims to quickly seize new growth opportunities. The Group also expects to achieve high levels of cost and development synergies, which should deliver approximately $30 million in EBITDA after 5 years.

The acquisition is based on an enterprise value of $150 million and will trigger implementation costs or capital expenditures of approximately $50 million over the next three years.

Thierry Le Hénaff, Chairman and CEO of Arkema, said: "We are very pleased to welcome the Dow Flexible Packaging Laminating Adhesives team to Arkema. This acquisition marks a major step forward for Bostik in the flexible packaging adhesives market and a unique opportunity for us to become one of the key partners for our customers across the packaging industry."