Reports on European M&A with previous experience at Mergermarket, Bloomberg The Daily Telegraph and Deutsche Presse Agentur.
FRANKFURT, Dec 7 (Reuters) – Private equity firm Advent International has finalised negotiations to purchase Saudi Basic Industries Corporation’s (2010.SE) (SABIC) polycarbonate sheets business, two sources familiar with the situation told Reuters.
The deal, which is expected to reach around $300 million, needs antitrust approval, the sources said. Barclays was sell-side adviser.
The transaction is an add-on acquisition for Advent’s existing portfolio business Roehm, with which it plans to develop a multi-polymer business, one of the sources said.
Advent invested in Roehm, a producer of methacrylates, in July 2019. Roehm will acquire a 100% stake in SABIC’s unit.
An official announcement regarding the sale of the SABIC business, known as ‘functional forms‘, is expected later on Wednesday, the same source added.
All the sources asked not to be named because the matter is not yet public.
Polycarbonate sheets are transparent thermoplastics that absorb minimal moisture, making them resistant to impact damage as well as water damage, flames and chemicals. They have applications in sectors including healthcare and building materials.
SABIC, which is 70% owned by Saudi Aramco, started the process of carving out the asset just before the pandemic. Talks between the two parties then took place over several months, two of the sources said.
Advent has built up its portfolio of chemical assets in recent years, including its acquisition in 2019 of German chemical firm Evonik’s methacrylate business for three billion euros.
Advent declined to comment. SABIC and Barclays did not immediately return requests for comment.
The chemicals sector has shown resilience this year in the face of slowing global M&A volumes, with Dutch specialty chemicals maker DSM striking deals to take over Swiss flavour and fragrance maker Firmenich and sell its engineering plastics division as it moves into the food ingredients and health products market.
DSM sold its engineering materials for 3.85 billion euros to Advent and German chemicals company Lanxess, announced late in May.
Reporting by Emma-Victoria Farr in Frankfurt, editing by Barbara Lewis
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