Omnova Solutions Completes Eliokem Deal

Fairlawn, OH, Dec. 10, 2010 -- Omnova Solutions said it has completed its acquisition of specialty chemicals manufacturer Eliokem International from AXA Private Equity. 

Omnova paid about $302 million at current exchange rates, before subtracting Eliokem's net debt and subject to working capital and capital expenditure adjustments.

In connection with the acquisition, Omnova issued $250 million in senior notes due 2018, replaced its existing $150 million term loan with a new $200 million term loan, and amended and extended its existing revolving credit facility.

"This combination creates a sinificantly enhanced, more diversified performanced chemicals business that is well positioned to serve customers on a global basis," said Omnova cEO Kevin McMullen. 

"It contributes to all three of our company's strategic objectives by providing entry into several new higher growth markets, expanding our portfolio of value-added technology solutions and significantly broadening our global manufacturing footprint.  Additionally, synergies are expected to provide savings in manufacturing, logistics, purchasing and SG&A by leveraging the resources of an integrated global team."

Omnova said it will be a $1.1 billion company, based on last 12 months sales through August.