Synthomer has acquired HEXION Performance Adhesives & Coatings, executing its first material acquisition under the new management team. The total consideration is $226m, funded from cash and existing facilities. The EBITDA multiple is 7.5x (versus Synthomer's existing 10x rating) but only 5.4x post synergies, a modest multiple relative to recent sector M&A. In terms of scale, this adds 28% to existing Synthomer's existing revenue and 16% to EBITDA (it is lower margin than Synthomer pre synergies ....
21 Mar 2016
First acquisition under new management
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First acquisition under new management
Synthomer plc (SYNT:LON) | 240 -10.8 (-1.9%) | Mkt Cap: 391.7m
- Published:
21 Mar 2016 -
Author:
James Tetley -
Pages:
3
Synthomer has acquired HEXION Performance Adhesives & Coatings, executing its first material acquisition under the new management team. The total consideration is $226m, funded from cash and existing facilities. The EBITDA multiple is 7.5x (versus Synthomer's existing 10x rating) but only 5.4x post synergies, a modest multiple relative to recent sector M&A. In terms of scale, this adds 28% to existing Synthomer's existing revenue and 16% to EBITDA (it is lower margin than Synthomer pre synergies ....