Petronas Chemicals to acquire speciality chemicals firm Perstorp for RM10.5bil

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 has inked a deal to acquire the entire equity interest in Perstorp Holding AB, a global speciality chemicals company, with Financière Forêt Sàrl, a company under European private equity firm PAI Partners, for EUR2.3bil (RM10.5bil)

In a statement, the group said the acquisition marks the creation of a significant speciality chemicals portfolio, while enhancing its overall earnings.

Perstorp is a leading niche specialty chemicals player that develops sustainable solutions with focus on the resins and coatings, engineered fluids and animal nutrition markets.

"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 Petronas Chemicals managing director and CEO Mohd Yusri Mohamed Yusof.

"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 critical talent, know-how, technological platforms and proven customer channels to address the pressing needs of the market for more sustainable solutions," he added.

According to Mohd Yusri, Perstorp will add up to 2.3 million tonnes per annum to Petronas Chemicals' production capacity and contribute about 28% incremental revenue to the group based on 2021 results.

The acquisition is also expected to support Petronas Chemicals' medium-term goal of establishing 30% revenue generated from non-traditional businesses by 2030.

Jan Secher, president and CEO of Perstorp, said: "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.”