PETRONAS Chemicals to buy Swedish specialty chemicals company Perstorp
PETRONAS Chemicals Group (PCG), a Malaysian chemicals producer, has agreed to acquire Perstorp, a specialty chemicals company, from Financière Forêt, a company under PAI Partners, for a price of €2.3 billion.
Based in Sweden and established over 140 years ago, Perstorp is a niche specialty chemicals producer. The company focuses on the resins and coatings, animal nutrition, and engineered fluids markets.
PETRONAS Chemicals Group said that it aims to bolster its basic petrochemicals portfolio and to diversify selectively into specialty chemicals, derivatives, and solutions. To implement the strategy, the Malaysian chemicals producer is acquiring Perstorp to create a significant specialty chemicals portfolio, while boosting its overall earnings.
Jan Secher — Perstorp President and CEO said: “We are excited to become part of the PETRONAS family. I see a strong commonality in values and priorities for how to take our respective businesses forward, meeting the challenges and opportunities of the future.
“By tapping into PCG’s strength and market leading position in the Asia Pacific region, we are confident that Perstorp can continue to develop into its next phase of growth.
“Being part of PCG means Perstorp gets the scale to increase the pace of innovation and accelerate our sustainable transformation, which is at the forefront of the chemical industry. PCG’s and Perstorp’s businesses complement each other very well.”
PETRONAS Chemicals to acquire Swedish specialty chemicals company Perstorp for €2.3 billion. Photo courtesy of PETRONAS Chemicals Group Berhad.
Perstorp is said to have a global sales footprint. It has seven manufacturing sites in Europe, the US, and China along with three research and development (R&D) centres worldwide.
The company’s eighth plant is expected to be ready in India next year. It has nearly 1,500 employees who cater to over 2,600 customers around the world.
Ir. Mohd Yusri Mohamed Yusof — PETRONAS Chemicals Group Managing Director and CEO said: “Perstorp is an outstanding strategic fit for PCG and enables us to participate in attractive end-markets such as paints and coatings, construction, plastic additives, personal care and food, feed & nutrition, paints and coatings that share a robust growth outlook.
“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 eco-friendly and sustainable solutions.”
The closing of the deal is contingent on regulatory and shareholders’ approvals.