Arkema to acquire a controlling stake in PI films producer for €728m

Arkema has proposed to acquire Glenwood Private Equity’s 54% stake in the South Korean company PI Advanced Materials (PIAM) for €728 million enterprise value. The remaining 46% of the shares will continue to be listed on the Korean stock exchange.

With more than 30% global market share and sales of over €200 million in 2022, PIAM is the global leader of polyimide (PI) films for flexible printed circuit boards and graphite sheets used in the consumer electronics and electric vehicles markets.

Employing about 320 people, PIAM runs two industrial production sites and two R&D centers in South Korea. The company enjoyed strong sales growth of 12% per year on average in the 2012-2021 period, and the sales are expected to grow at 13% p.a., driven by increasing demand in applications such as lithium-ion batteries, 5G antennas, high resolution OLED displays, and flexible screens.

PI Advanced Materials is the global leader of PI films. The company operates two production sites in South Korea.

The acquisition would be a new significant milestone in Arkema’s transformation into a pure specialty materials player, offering opportunity to broaden and strengthening the Advanced Materials segment’s portfolio and performance.

“After the divestment of PMMA, the acquisition of Ashland adhesives and the current start-up of our bio PA11 plant in Singapore, Arkema is delivering another significant milestone of its strategy focused on innovative materials for a sustainable world,” stated Thierry Le Hénaff, Arkema’s Chairman and Chief Executive Officer.

The deal, which is subject to the approval of Chinese and Korean anti-trust authorities, should be finalized end-2023.