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Synthomer £205m Placing via ABB

Numis Acts as Joint Bookrunner to Synthomer on its £205m Placing via ABB 

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We’re proud to have supported Synthomer PLC in this significant placing, the proceeds of which are to part-fund the proposed $1bn acquisition of the Adhesive Resins business of Eastman Chemical Company.
Synthomer is a global differentiated chemicals company, with a market capitalisation of £2.4bn, and one of the world’s leading suppliers of sustainable water-based and differentiated polymer solutions. The proposed acquisition will form the new Adhesive Technologies division of Synthomer.
As the company has stated, the acquisition is in line with Synthomer’s strategy and is expected to deliver double digit earnings accretion from Year 1. Return on invested capital is expected to exceed its cost of capital in the third full financial year following completion.
We are pleased to have played a role as Joint Bookrunner, wall-crossing investors in an accelerated process to meet wider transaction deadlines. Synthomer will finance the remaining consideration with existing cash and drawing under a new $300m debt facility.
The placing, which represents approximately 10% of ISC, was multiple times oversubscribed and priced at a 2.1% premium to the 30-day VWAP. The Placing Price represented a discount of approximately 1.6% to the intraday price of 493p on 28 October 2021.

“We were delighted to have acted as joint bookrunner to Synthomer in connection with the acquisition of the Adhesive Resins business of Eastman Chemical Company. This fundraising, our first since being appointed as joint broker in December 2019, is an example of how we brought together market intelligence from sales, research, trading and investment banking. Synthomer has a first class share register which was fully supportive of Synthomer’s growth plans.”

James Taylor Head of Investment Banking

The Numis deal team was led by Mark Lander and Garry Levin.

For further information, please contact your Numis representative.

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