Posted in | Business | Chemistry

OMNOVA Solutions Buys Specialty Chemicals Manufacturer for 227.5 Million Euros

OMNOVA Solutions (NYSE: OMN) today announced that it has completed its acquisition of specialty chemicals manufacturer Eliokem International ("ELIOKEM") from AXA Private Equity.

OMNOVA paid 227.5 million euros for ELIOKEM, or approximately US$302 million at current exchange rates, before subtracting ELIOKEM's net debt and subject to working capital and capital expenditure adjustments. The Company expects the transaction to be neutral to slightly dilutive to earnings in 2011, but accretive in 2012.

In connection with the acquisition, the Company issued US$250 million in senior notes due 2018, replaced its existing US$150 million term loan with a new US$200 million term loan, and amended and extended its existing revolving credit facility.

"This combination creates a significantly enhanced, more diversified Performance Chemicals business that is well positioned to serve customers on a global basis," said Kevin McMullen, Chairman and Chief Executive Officer of OMNOVA Solutions.  "It contributes to all three of our Company's strategic objectives by providing entry into several new higher growth markets, expanding our portfolio of value-added technology solutions and significantly broadening our global manufacturing footprint.  Additionally, synergies are expected to provide savings in manufacturing, logistics, purchasing and SG&A by leveraging the resources of an integrated global team.

"Together, with our Decorative Products functional surfaces business, OMNOVA Solutions will be a US$1.1 billion company, based on last twelve months sales through August," McMullen said.  "Over 40% of those sales will be outside the United States."

While 75% of ELIOKEM's sales are in product markets that OMNOVA has not previously served, ELIOKEM's business model – including manufacturing process, key raw materials and go-to-market approach – is very similar to OMNOVA's.  Focusing on the same basic emulsion polymerization process, the acquisition adds a number of new acrylic, styrene butadiene and nitrile chemistries and applications, including coating resins, elastomeric modifiers, antioxidants, specialty rubbers and reinforcing resins, as well as complementary products for oil field and specialty latex applications.

OMNOVA Solutions' Performance Chemicals business has been primarily a producer of styrene butadiene, acrylic and other latices and specialty chemicals used in coatings for high-end paper and packaging, carpet, durable and consumable nonwovens, tape and release coatings, floor polishes, construction, oil field, textile finishes, digital printing, graphic arts and other specialty applications.

Both chemical businesses have achieved solid growth in 2010, with combined last twelve months sales and Adjusted EBITDA through August of approximately US$788 million and US$122 million, respectively.

In addition to OMNOVA's five chemical production facilities in North America which provide products and services worldwide, the acquisition adds global manufacturing capability to serve Europe and the high growth, developing markets in Asia with one plant in France (Le Havre), two plants in China (Ningbo and Caojing) and one in India (Valia).  In addition, the ELIOKEM plant in Akron, Ohio, will provide OMNOVA with important new processing capabilities.

Both OMNOVA and ELIOKEM have strong polymer development capabilities and a talented team of scientists and technical service specialists which, in combination, will accelerate development of a broader range of solutions for new and existing customers.  The combined Company will have R&D capabilities on three continents.

"Our Performance Chemicals business will remain headquartered in Fairlawn, Ohio, with global manufacturing and product line management structured regionally around (1) North America, (2) Europe, India and the Middle East, and (3) Asia," said Jim Hohman, President of OMNOVA's Performance Chemicals segment.  "This structure will assure an aligned business strategy focused on providing value-added solutions to our customers on a global basis and achieving profitable sales growth."



Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    OMNOVA solutions Inc.. (2019, February 10). OMNOVA Solutions Buys Specialty Chemicals Manufacturer for 227.5 Million Euros. AZoM. Retrieved on July 12, 2020 from

  • MLA

    OMNOVA solutions Inc.. "OMNOVA Solutions Buys Specialty Chemicals Manufacturer for 227.5 Million Euros". AZoM. 12 July 2020. <>.

  • Chicago

    OMNOVA solutions Inc.. "OMNOVA Solutions Buys Specialty Chemicals Manufacturer for 227.5 Million Euros". AZoM. (accessed July 12, 2020).

  • Harvard

    OMNOVA solutions Inc.. 2019. OMNOVA Solutions Buys Specialty Chemicals Manufacturer for 227.5 Million Euros. AZoM, viewed 12 July 2020,

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback