PETRONAS Chemicals Group Berhad (PCG) signed a Securities Purchase Agreement to acquire the entire equity interest in Perstorp Holding AB, for EUR1,538.0 million, which is equivalent to RM7,018.7 million.
Perstorp is a leading sustainability-driven global specialty chemicals company.
The agreement was signed with Financière Forêt S.à.r.l, a company under PAI Partners, a European private equity firm. The acquisition values Perstorp Group at an enterprise value of EUR2,300.0 million, which is equivalent to RM10,496.1 million.
With this acquisition, it will strengthen PCG’s basic petrochemicals portfolio, and to selectively diversify into derivatives, specialty chemicals and solutions.
In the official statement released by the company, it states that “this acquisition marks the creation of a significant specialty chemicals portfolio in the execution of of this strategy while enhancing PCG’s overall earnings. This follows the acquisition of BRB Group in 2019, a leading global independent producer and formulator of silicones, lube oil additives and chemicals, which launched PCG into new areas aligned with its long-term growth ambitions.”
“This landmark acquisition is a major milestone for PCG in establishing a key platform to diversify into the specialty chemical industry and capture new growth opportunities, whilst enabling us to future proof our business against market cyclicality and volatility,” said PCG Managing Director/Chief Executive Officer, Ir. Mohd Yusri Mohamed Yusof.
“Perstorp is an outstanding strategic fit for PCG and enables us to participate in attractive end markets such as paints & coatings, construction, automotive, personal care and animal nutrition 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 sustainable solutions,” he added.
Established more than 140 years ago, Perstorp is a leading niche specialty chemicals player that develops sustainable solutions with focus on the Resins & Coatings, Engineered Fluids and Animal Nutrition markets. With seven state-of-the-art manufacturing sites and three research and development (R&D) centres worldwide, Perstorp has presence in 26 countries including US, Europe and Asia Pacific.
On top of that, it has global #1 position in several products such as Trimethylolpropane (TMP) and Pentaerythritol (Penta). Perstorp is highly regarded among its customers for its product quality and customisation, supply reliability, customer centricity and sustainable products and is recognised for its proprietary oxo and polyol chemistries.
In FY2021, Perstorp recorded approximately EUR1,334 million (RM6,540 million) in revenue and EUR248 million (RM1,214 million) in EBITDA with an EBITDA margin of 18.6%.
“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. Perstorp will add up to 2.3 mtpa to PCG’s production capacity and contribute about 28% incremental revenue to PCG based on 2021 results as well as support PCG’s medium-term goal of establishing 30% revenue generated from non-traditional businesses by 2030. We are excited to welcome Perstorp and its exceptional team into PCG family,” Ir. Mohd Yusri added.
“We are excited about becoming 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 in the future. By tapping into the PETRONAS strong global brand and PCG’s strength as a reputable industry and market leader in the Asia Pacific region, we are confident that Perstorp can continue to expand into its next phase of growth,” Jan Secher, President and CEO of Perstorp said.
“With Perstorp’s holistic and innovative approach to reduce environmental impact in line with PCG’s aim for positive environmental and social contributions, we are confident that together we can accelerate our sustainability journey towards circular economy and carbon neutrality by 2050,” concluded Ir. Mohd Yusri.
The completion of the acquisition is subject to relevant regulatory and shareholders’ approvals.