Perstorp says deal will allow it to continue to grow its business
Perstorp Group, a sustainability-driven global specialty chemicals company, said it will be acquired by PETRONAS Chemicals Group Berhad (PCG). PCG said it signed a Securities Purchase Agreement on May 14 to acquire the entire equity interest in Perstorp Holding AB. The agreement was signed with Financière Forêt S.à.r.l, a company under PAI Partners, a European private equity firm.
“We are excited to become part of the PETRONAS family,” said Jan Secher, president and CEO of Perstorp. “I see a strong commonality in values and priorities for how to take our respective businesses forward, meeting the challenges and opportunities of the future. By tapping into PCG’s strength and market-leading position in the Asia Pacific region, we are confident that Perstorp can continue to develop into its next phase of growth. Being part of PCG means Perstorp gets the scale to increase the pace of innovation and accelerate our sustainable transformation, which is at the forefront of the chemical industry. PCG’s and Perstorp’s businesses complement each other very well.”
“Perstorp is an outstanding strategic fit for PCG and enables us to participate in attractive end-markets such as paints and coatings, construction, plastic additives, personal care and food, feed and nutrition, paints and coatings that share a robust growth outlook. This acquisition will also provide us critical talent, know-how, technological platforms and proven customer channels to address the pressing needs of the market for more eco-friendly and sustainable solutions,” said PCG managing director and CEO, Ir. Mohd Yusri Mohamed Yusof.
Established more than 140 years ago, Perstorp is a leading niche specialty chemicals player that develops sustainable solutions with focus on the resins and coatings, engineered fluids and animal nutrition markets. The company has a global sales presence, seven state-of-the art manufacturing sites in Europe, U.S. and China (the eighth plant will be ready in India in 2023) and three research and development (R&D) centers worldwide with approximately 1,500 employees serving more than 2,600 customers globally. Perstorp is highly regarded among its customers for its product quality and application expertise, supply reliability, customer centricity and pro-environment products and solutions.
“We find Perstorp attractive for their expansive range of products, established customer base as well as their market leadership in selected chemicals, which are complementary to PCG. It is our intention to make Perstorp our growth platform into the specialty chemicals field. With Perstorp’s holistic and innovative approach to reduce environmental impact in line with PCG’s aim for positive environmental and social contribution, we are confident that together we can accelerate our sustainability journey towards circular economy and carbon neutrality by 2050,” Yusof said.
PCG’s journey to achieve its vision of becoming the preferred chemical company providing innovative customer solutions is based on a clear strategy: to strengthen its basic petrochemicals portfolio, and to selectively diversify into derivatives, specialty chemicals and solutions. In the execution of this strategy, the acquisition of Perstorp group marks the creation of a significant specialty chemicals portfolio, while enhancing PCG’s overall earnings. This transaction follows the acquisition of BRB Group in 2019, a leading global independent producer and formulator of silicones, lube oil additives and chemicals, which launched PCG into new areas aligned with its long-term growth ambitions.
“I am convinced that Perstorp and PCG can learn from each other’s capabilities to ensure we bring the best of our two companies to our customers and our employees. I am confident that PCG will provide the best possible ownership for Perstorp in the years to come” Secher said.
The acquisition values Perstorp Group at an enterprise value of EUR2,300 million.
The completion of the acquisition is subject to relevant regulatory and shareholders’ approvals.