Petronas Chemicals to acquire Perstorp Holding in deal that values Swedish company at RM10.5b
17 May 2022
Petronas Chemicals Group Bhd (PCG) said it has signed a securities purchase agreement to acquire 100 per cent of Sweden-based global sustainable specialty chemicals company Perstorp Holding AB for €1.54 billion, or equivalent to RM7.02 billion.
The agreement was signed with Financière Forêt S.à.r.l, a company under PAI Partners, an European private equity firm.
The acquisition values Perstorp Group at an enterprise value of €2.30 billion, or RM10.5 billion.
PCG managing director and chief executive officer Mohd Yusri Mohamed Yusof said the landmark acquisition was a major milestone for PCG in establishing a key platform to diversify into the specialty chemicals industry and capture new growth opportunities, “whilst enabling it to future-proof our business against market cyclicality and volatility.”
“Perstorp is an outstanding strategic fit for PCG and enables us to participate in attractive end-markets such as paints and coatings, construction, automotive, personal care, and animal nutrition that share a robust growth outlook,” he said in a statement. “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 sustainable solutions.”
PCG said its journey to achieve the vision of becoming the preferred chemicals company providing innovative customer solutions is based on a clear strategy that strengthens its basic petrochemicals portfolio, and selectively diversifies into derivatives, specialty chemicals, and solutions. In addition, the acquisition marks the creation of a significant specialty chemicals portfolio, while enhancing PCG’s overall earnings.
The latest move follows the acquisition of the BRB Group in 2019, a leading global independent producer and formulator of silicones, lube oil additives, and chemicals, which launched PCG into new areas.
“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,” Mohd Yusri said.
“Perstorp will add up to 2.3 million metric tonnes per annum to PCG’s production capacity and immediately contribute about 28 per cent incremental revenue to PCG based on 2021 results as well as support its medium-term goal of establishing 30 per cent revenue generated from non-traditional businesses by 2030. This acquisition will also contribute towards strengthening Malaysia’s specialty chemicals industry, benefitting the economy in the long run,” he added.
President and chief executive officer of Perstorp Jan Secher expressed confidence that the group can continue to expand into its next phase of growth by tapping into Petronas’ strong global brand and PCG’s strength as a reputable industry and market leader in the Asia Pacific region.
Perstorp was established more than 140 years ago, developing sustainable solutions with a focus on the resins and coatings, engineered fluids, and animal nutrition markets.
It has a presence in 26 countries, including the United States, Europe, and the Asia Pacific with about 1,500 employees.
Perstorp ranked first globally in several products, such as trimethylolpropane (TMP) and pentaerythritol (Penta). In the financial year 2021, it recorded €1.33 billion in revenue and €248 million in earnings before interest, taxes, depreciation, and amortisation.