This operation marks a major step in Arkema’s strengthening of its Adhesive Solutions segment, and fully aligns with the Group’s strategy to become a pure specialty materials player by 2024.
“We are very happy to welcome Ashland Performance Adhesives’ teams within Arkema,” said Thierry Le Hénaff, Arkema’s chairman and CEO. “I am convinced that Bostik will benefit from this deal to accelerate its development in attractive and high-growth applications. Our strengthened Adhesive Solutions segment will play a key role in implementing our ambition to be a leader in innovative materials for a more sustainable world.”
With its wide range of key technologies and well-known brands, Ashland has been a major player in pressure-sensitive adhesives and mostly for signage films, automotive, and building applications. It also holds positions in structural adhesives, offering an extensive range of adhesives for flexible packaging. This activity, which employs about 330 people and operates six production plants (mostly in North America), generated estimated sales of close to $360 million in 2021 and an EBITDA margin above 25%.
The new acquisition also offers excellent commercial, technological, and geographic complements with Bostik, allowing it to expand its solutions offering and position itself as a major player in high-performance industrial adhesives. This operation is based on a $1,650 million enterprise value (i.e. 8.7x the 2026 EBITDA after taking into account the expected growth in the coming years and the synergies evaluated at 12.5% of sales).
Bostik is one of Arkema’s largest acquisition, which took place back in 2015. A key milestone in its strong long-term growth ambition, the acquisition of Ashland now allows Bostik to aim for an EBITDA margin above 17% by 2024.
With the ambition to become in 2024 a pure player in specialty materials, the Group is structured into three innovative segments: adhesive solutions, advanced materials, and coating solutions — accounting for some 85.5% of Group sales in 2021, and a well-positioned and competitive Intermediates segment. Arkema further offers technological solutions to meet the challenges of, among other things, new energies, access to water, recycling, urbanization and mobility, and fosters a permanent dialogue with all its stakeholders.