Chemical manufacturer, Arkema, recently signed an agreement for the acquisition of Ashland’s Performance Adhesives business, a provider of high-performance adhesives for industrial applications in the U.S. with a unique and innovative product portfolio. The acquisition is aligned with Arkema’s ambition to become a pure, specialty materials player by 2024.

“We are very happy and proud of this move,” said Thierry Le Hénaff, Arkema’s chairman and CEO. “In a context of strong earnings growth following the recent divestment of PMMA and the start of the strategic review of Fluorogases, the acquisition of Ashland’s adhesives business is a fantastic opportunity to reinforce the Group’s presence in the U.S.”

Ashland Performance Adhesives offers a wide range of adhesives for flexible packaging, addressing growing demand for more sustainable products. It also holds significant positions in structural adhesives in the U.S., in particular in segments such as wood bonding for construction, composites, and transportation.

This will complement Arkema’s position, allowing the company to benefit from fast-growing demand driven by major sustainable trends.

With projected sales of $360 million for 2021, Ashland’s Performance Adhesives business has reportedly enjoyed sustained growth in recent years and has significant growth potential in Europe and Asia. The division employs approximately 330 people and operates six production plants, mainly in North America.

The cultures of the teams are very close, focused on customer centricity and sustainable innovation,” Thierry Le Hénaff, the Group’s chairman and CEO. “We look forward to welcoming Ashland’s high-caliber management team and to partner together for this highly value creative deal.”

Ashland reports that it expects net proceeds from the sale to total approximately $1.2 to $1.3 billion. The transaction is driven by the company’s strategy to focus its resources on expanding its additive and ingredients portfolio, which will be aligned with long-term environment, social, and governance drivers and with resilient high-quality consumer markets that value innovation.

“Performance Adhesives is a high-quality business with a strong and dedicated team that has demonstrated consistent and exceptional financial performance over the years,” said Guillermo Novo, Ashland chairman and CEO. “I want to thank the leadership team and global employees for their dedication and commitment to Ashland and to our customers. I believe that Arkema will be a great owner of the business, creating value for customers and employees.”

The project is subject to the approval of the antitrust authorities in the countries concerned. Relevant legal information and consultation process involving employee representative bodies will be performed.