Petronas to Buy Perstorp
Malaysia’s Petronas in $2.4bn deal to buy Swedish chemical maker
Both companies see acquisition as opening new growth paths
Malaysia’s Petronas Chemicals is buying Swedish chemical maker Perstorp Holding. (Source photos courtesy of Petronas Chemicals and screenshot from Perstorp Group YouTube page) P PREM KUMAR, Nikkei staff writerMay 17, 2022 21:12 JST
KUALA LUMPUR — Malaysia’s Petronas Chemicals Group, a subsidiary of state energy firm Petroliam Nasional Berhad (Petronas), said on Tuesday it will acquire Swedish specialty chemicals maker Perstorp Holding in a deal worth 2.3 billion euros ($2.4 billion).
Petronas Chemicals said it signed a securities purchase agreement on Saturday to acquire all shares in Perstorp from European private equity firm Financière Forêt S.à.r.l for 1.54 billion euros in cash and take on Perstorp’s existing debt of 762 million euros.
“Perstorp is an outstanding strategic fit for Petronas Chemicals 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,” Mohd Yusri Mohamed Yusof, managing director and CEO of the Malaysian company, said in a statement.
In a separate release, Jan Secher, Perstorp’s president and CEO, highlighted advantages for the Swedish company.
“By tapping into PCG’s strength and market leading position in the Asia Pacific region, we are confident that Perstorp can continue to develop into its next phase of growth,” Secher said.
According to its website, Perstorp was established more than 140 years ago and has expertise in resins and coatings, engineered fluids and animal nutrition markets.
The Swedish company also operates in 26 countries and has seven manufacturing sites and three research and development centers. It employs about 1,500 people and has over 2,600 customers worldwide. It offers 130 products within 30 product groups.
In the financial year ended December 2021, Perstorp recorded 1.3 billion euros in revenue and 103 million euros in after-tax profit.
For the same period, Petronas Chemicals had a net profit of 7.35 billion ringgit ($1.67 billion) on the back of 23.03 billion ringgit in revenue.
According to Mohd Yusri, Perstorp will add up to 2.3 metric tons a year to Petronas Chemicals’ production capacity and contribute about 28% in incremental revenue to the company based on the 2021 results.
The completion of the acquisition is subject to relevant regulatory and shareholder approvals.« Previous Post Next Post »