PetChem buys Perstorp in RM10.5bil deal

Petronas Chemicals Group Bhd (PCG) managing director/CEO Ir. Mohd Yusri Mohamed Yusof (seated, left) and PAI Partner Fabrice Fouletier (seated, right). Standing from left: PCG chief financial officer Mohd Azli Ishak, Perstorp president and CEO Jan Secher and PAI Partner Ragnar Hellenius.

KUALA LUMPUR: Petronas Chemicals Group Bhd (PCG) has announced the landmark acquisition of the entire equity interest in Perstorp Holding AB for RM7.018bil cash.

In a statement Tuesday, PCG said it had on May 14 signed a securities purchase agreement to acquire Perstorp, a leading sustainability-driven global specialty chemicals company, for EUR1.538bil, which is equivalent to RM7.018bil.

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 EUR2.3bil, which is equivalent to RM10.49bil.

“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,” PCG managing director/chief executive officer, Ir. Mohd Yusri Mohamed Yusof said.

“Perstorp is an outstanding strategic fit for PCG and enables us to participate in attractive end-markets such as paints and coatings, construction, automotive, personal care and animal nutrition that share a robust growth outlook.

“This acquisition will also provide us with 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 a focus on the resins and 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 a presence in 26 countries including the US, Europe and Asia Pacific.

In FY21, Perstorp recorded approximately EUR1,334 million (RM6.54bil in revenue and EUR248mil (RM1.21bil) 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 metric tonne per annum to PCG’s production capacity and immediately 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,” Mohd Yusri said.

The completion of the acquisition is subject to relevant regulatory and shareholders’ approval.

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