Divestment of Acrylate Monomers
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Synthomer plc
Divestment of Acrylate Monomers
Synthomer plc ('Synthomer' or 'the Group') today announces an agreement to divest Synthomer a.s., the operating company for its Acrylate Monomers business based in the Czech Republic, to Mutares SE & Co. KGaA, a German listed private equity-style company focused on companies in transition.
Acrylate Monomers is a leading supplier of acrylic acid and related monomers to the European merchant market and has c.300 employees based at its manufacturing site in Sokolov, Czech Republic. The site also supports some of the Group's downstream needs, including as a supplier of acrylic monomers to Group companies and producing acrylic dispersions on behalf of the Group. These supply arrangements will continue under the new ownership.
Acrylate Monomers, currently part of Synthomer's Health & Protection and Performance Materials division, operates in highly cyclical markets and is one of the more capital-intensive parts of the Group's portfolio; the divested business has required c.€5m on average in capital expenditure per annum. Acrylate Monomers is the only remaining upstream asset in the Group and was designated as non-core as part of the strategic review announced in October 2022. The transaction will therefore remove a cyclical and capital-intensive base chemicals business from the Group, improving profitability and cash generation, and further transitioning the simplified portfolio towards a speciality focus.
In the year ended 31 December 2025, Acrylate Monomers generated external sales of €68m and recorded a standalone adjusted EBITDA loss of €10m. Trading improved to break-even in the first four months of 2026 (compared with a loss of €3m in the comparable period in 2025), driven by more favourable short-term market dynamics since the start of the Iran conflict and cost reductions.
The transaction is subject to certain customary closing conditions and is expected to complete at the end of Q3 2026. At closing, the operating company is expected to include c.€5m in cash to support the normalised working capital requirements of the business. The transaction consideration comprises a cash generation sharing arrangement of up to €12m over three years, with no initial consideration at closing.
Commenting, Synthomer CEO Michael Willome said:
"Today's announcement is another important step in delivering our strategy to simplify our business and sharpen our focus on higher-margin, higher-growth speciality chemicals markets where we have strong and sustainable leadership positions. I am confident this transaction is a good outcome for all stakeholders. Mutares, as an experienced turnaround investor with a strong track record in transforming industrial businesses, is well positioned to support Acrylate Monomers in its next phase of development. We wish our colleagues well for the next chapter in Acrylate Monomers' story."
Further information:
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Investors: Faisal Tabbah, Vice President Investor Relations |
Tel: +44 (0) 1279 775 306 |
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Media: Nick Hasell, FTI Consulting |
Tel: +44 (0) 203 727 1340 |
Notes
Synthomer plc is a leading supplier of high-performance, highly specialised polymers and ingredients that play vital roles in key sectors such as coatings, construction, adhesives, and health and protection - growing markets for customers who serve billions of end users worldwide. Headquartered in London, UK and listed there since 1971, we employ c.3,800 employees across our five innovation centres of excellence and 29 manufacturing sites across Europe, North America, Middle East and Asia. With more than 6,000 blue-chip customers and £1.7bn in continuing revenue in 2025, our business is built around three divisions, serving customers in attractive end markets where demand is driven by global megatrends including urbanisation, demographic change, climate change and sustainability, and shifting economic power.
In Coatings & Construction Solutions, our specialist polymers enhance the sustainability and performance of a wide range of coatings and construction products. We serve customers in applications including architectural and masonry coatings, mortar modification, waterproofing and flooring, fibre bonding, and energy solutions. In Adhesive Solutions our products help our customers bond, modify and compatibilise surfaces and components for applications including tapes and labels, packaging, hygiene, tyres and plastic modification, improving permeability, strength, elasticity, damping, dispersion and grip. In Health & Protection and Performance Materials we are a world-leading supplier of water-based polymers for medical gloves, and a major European manufacturer of high-performance binders, foams and other products serving customers in a range of end markets.
Our purpose is creating innovative and sustainable solutions for the benefit of customers and society. Around 20% of our sales volumes are from new and patent protected products. At our innovation centres of excellence in the UK, China, Germany, Malaysia and Ohio, USA we collaborate closely with our customers to develop new products and enhance existing ones tailored to their needs, with an increasing range of sustainability benefits. Our 2030 decarbonisation targets have been approved by the Science Based Targets initiative as being in line with what the latest climate science says is necessary to meet the goals of the Paris Agreement, and since 2021 we have held the London Stock Exchange Green Economy Mark, which recognises green technology businesses making a significant contribution to a more sustainable, low-carbon economy. Find us at www.synthomer.com or search for Synthomer on LinkedIn.
This announcement contains inside information. The person responsible for making this announcement on behalf of Synthomer is Anant Prakash, General Counsel & Company Secretary. Legal Entity Identifier (LEI): 213800EHT3TI1KPQQJ56.
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