Arkema, a global leader in specialty materials, has finalized the acquisition of Dow's flexible packaging laminating adhesives business, a strategic move aimed at enhancing Arkema's position in the flexible packaging market. This acquisition, valued at approximately $150 million, encompasses a business segment that generates annual sales of around $250 million, significantly expanding Arkema's portfolio of solutions for flexible packaging.

The acquired business offers a comprehensive range of high-quality adhesives under well-established brands such as ADCOTE™ and MOR-FREE™. These products cater to various applications, including food and medical packaging, as well as industrial lamination for products like window films and photovoltaic backsheets. The integration of these offerings is expected to bolster Arkema's capabilities in delivering innovative and sustainable solutions to the packaging industry.

As part of the transaction, five state-of-the-art production facilities located in Italy, the United States, and Mexico will be transferred to Arkema. This expansion is set to enhance the company's manufacturing footprint and operational efficiency across key regions, particularly in North America and Europe.

Thierry Le Hénaff, Arkema's Chairman and Chief Executive Officer, expressed enthusiasm about the acquisition, stating, "We are very happy to announce this great acquisition which is perfectly in line with Arkema’s strategy to offer its customers innovative products with high technological content and continue to grow in the attractive adhesives segment." He further emphasized that the move would broaden Arkema's commercial and geographic presence in the packaging sector, addressing evolving market demands and sustainability challenges.

The flexible packaging market is anticipated to experience growth exceeding GDP rates in the coming years, driven by the increasing demand for more sustainable and recyclable solutions. Arkema aims to capitalize on this trend by rapidly capturing new growth opportunities and achieving significant cost and development synergies, projected to contribute approximately $30 million in EBITDA within five years.

This acquisition aligns with Arkema's strategic objective to expand into advanced technologies and high-growth markets, reinforcing the future growth of its Adhesive Solutions segment. The company plans to invest around $50 million in implementation costs and capital expenditures over the next three years to ensure a seamless integration and to maximize the potential of the newly acquired business.

In summary, Arkema's completion of the acquisition of Dow's flexible packaging laminating adhesives business marks a pivotal step in strengthening its market position and enhancing its ability to provide innovative, sustainable solutions to the packaging industry. This strategic move is poised to deliver substantial value to Arkema's stakeholders and customers alike.