More than 16 Billion Yuan! This Century-old Specialty Chemical Giant Will Change Hands Again

On May 17, Malaysia's Petronas Chemicals Group (Petronas Chemicals Group, Ma Petrochemical) announced that it had signed an agreement with a company under the European private equity firm PAI Partners on May 14, with 2.3 billion euros (approximately more than RMB 16 billion). ) to acquire Swedish specialty chemicals giant Perstorp.

With the acquisition of Perstorp, the company has created a significant portfolio of specialty chemicals and will boost overall earnings, Ma said. The acquisition of Perstorp will increase its overall production capacity by as much as 2.3 million tonnes/year and contribute 28% of incremental revenue, accounting for 30% of revenue by 2030.

In 2021, Perstorp will generate sales of approximately EUR 1.3 billion and EBITDA of EUR 248 million. The acquisition is expected to close in the third quarter.

Petronas is a subsidiary of Petronas, and its main business is the production of commodities such as olefins, polymers, methanol and fertilizers. Ma Petrochemical said the company's strategy is to strengthen its portfolio of basic petrochemicals and selectively diversify into derivatives, specialty chemicals and solutions. The acquisition is a major milestone following the 2019 acquisition of silicone and lubricant additive company BRB Group.

The Swedish specialty chemicals company Perstorp was founded in 1881 by Wilhelm Wendt and has a history of more than 140 years. Its products include polyols, plasticizers, specialty polymers, acids, salts, etc. Perstorp Group has 9 production bases around the world, which are distributed in Europe, Asia and North America. Among them, Perstorp China was established in Shanghai in 2006, and has warehouses in Shanghai, Guangzhou, Qingdao and Nantong. Alcohols, plasticizers, special polymers, acids, salts and other products are widely used in resins and coatings, synthetic lubricants and engineering fluids, plastic materials, animal nutrition and other fields.

It is reported that this is not the first time that Perstorp shares have been transferred.

In late 2005, European private equity firm PAI Partners acquired Perstorp Group from Industri Kapital.

In September 2018, Perstorp moved into a new investment fund jointly managed by lead investors PAI Partners and Landmark Partners, as well as other co-investors.