Petrochemicals Malaysia Acquires Perstorp, A Specialty Chemicals Company

On May 14, Malaysia's Petrochemical Corporation (hereinafter referred to as "Petrochemical") signed an equity purchase agreement to acquire the entire equity of Perstorp Holding AB (Perstorp). The agreement was signed with Financière Forêt S.à.r.l, part of the European private equity firm PAI Partners. Perstorp is a leading global specialty chemicals company. The enterprise value of the acquisition of the Perstorp Group is 2.3 billion euros.

Ir. Mohd Yusri Mohamed Yusof, Chief Executive Officer of Mapec, said: "This landmark acquisition is of great significance to Mapec as it provides Mapec with a key platform that will allow us to diversify into the specialty chemicals industry and Seize new growth opportunities while making our business resilient to market cyclicality and volatility in the future. In addition, this acquisition will also contribute to the growth of the specialty chemicals industry in Malaysia, which will also benefit the economy in the long run Development. We look forward to and welcome Perstorp and his outstanding team to our Mapec family.”

It is understood that in order to strengthen the basic petrochemical product portfolio and selectively achieve diversification in derivatives, specialty chemicals and solutions, Ma Petrochemical has intensified its mergers and acquisitions in recent years. The acquisition of Perstorp marks the creation of a significant portfolio of specialty chemicals, while also enhancing Mapec's overall earnings. This follows the acquisition of BRB Group in 2019 to expand the silicone and lubricant additives business.

“Perstorp is an outstanding strategic choice for Petrochemicals, allowing us to participate in attractive end markets such as paints and coatings, construction, automotive, personal care and animal nutrition. These end markets have good prospects for development and growth Momentum is strong. This acquisition also provides us with key talent, expertise, technology platform and mature customer channels to meet the urgent market demand for more sustainable solutions,” said Ir. Mohd Yusri.

Founded more than 140 years ago, Perstorp is a leading specialty chemicals company focused on the resins and coatings, engineered fluids and animal nutrition markets. The company has seven advanced production bases and three R&D centers around the world, and its business scope covers 26 countries including the United States, Europe and the Asia-Pacific region, providing more than 2,600 customers around the world with 130 products in 30 product groups, including many Products occupy the world's first position, such as trimethylolpropane and pentaerythritol. In fiscal 2021, Perstorp recorded earnings of approximately EUR 1.334 billion and earnings before interest, tax, depreciation and amortization (EBITDA) of EUR 248 million, with an EBITDA margin of 18.6%.

Completion of the acquisition is subject to final approval from relevant regulatory authorities and shareholders.