Arkema to acquire Dow’s flexible packaging laminating adhesive business

Arkema has agreed to acquire Dow’s flexible packaging laminating adhesives business, which will significantly expand Arkema’s portfolio of solutions for flexible packaging.

Arkema will acquire Dow’s flexible packaging laminating adhesive business.

As one of the leading producers of adhesives for the flexible packaging market, Dow generates annual sales of around US$250 million. It owns cutting-edge technologies, well-recognized brands such as ADCOTE and MOR-FREETM, and five state-of-the-art production sites in Italy, the United States and Mexico.

The acquired business offers a broad range of high-quality solutions in food and medical applications, where flexible packaging is an efficient solution, as well as for industrial lamination (window films, photovoltaic backsheets, etc.).

The proposed acquisition is based on an enterprise value of US$150 million (around 10 times 2024F EBITDA) and will trigger around US$50 million of implementation costs or capex over the next three years.

As Arkema’s subsidiary, Bostik has existing commercial presence, product offering and technological breadth for flexible packaging. This acquisition project will enable Bostik to ideally complement its existing business as one of the key global partners for customers across the packaging industry.

The project is subject to the approval of certain antitrust authorities and is expected to close in the fourth quarter of 2024.