In the latest blockbuster composites industry merger, Polynt Composites (Bergamo, Italy) and Reichhold (Durham, N.C., USA) announced a definitive agreement to combine their two businesses. The business combination is expected to create “a leading global, vertically-integrated manufacturer of resins for composites and coatings and of other specialized chemicals, including intermediates, plasticizers, additives and compounds.” The transaction is expected to be completed in the second half of 2016.
According to a story by Reuters, the deal that could net about 700 million euros ($759 million) for Polynt’s private equity owner, Investindustrial.
“Our aim to better serve our stakeholders and customers will be further strengthened by the combination of two industry leaders, historically devoted to innovation and customer orientation. Our people are always committed to improve their performance and knowledge for the benefit and growth of our industry. We welcome the opportunity to leverage the potential of the new group,” said Rosario Valido, President and CEO of Polynt.
John S. Gaither, President and CEO of Reichhold, believes the deal is mutually beneficial.
“This compelling deal is expected to result in significant synergy opportunities and will enable our combined businesses to be more competitive, offer better services and more innovative solutions to our customers,” said Gaither. “It will allow us to respond more effectively to evolving industry dynamics and customer needs. With increased scale and product diversity, we can deploy a larger portfolio of products and provide more comprehensive offerings to benefit our collective customers. This combination brings together two strong businesses and positions us to succeed in a dynamic and highly competitive global marketplace.”
The merger is arguably one of the three biggest in the industry over the past year, along with the 2015 mergers of Solvay/Cytec and Dow/DuPont. For more information on the latest merger and acquisition activity, read the March 2016 issue of the CAMX Connection.