Omnova To Purchase French Chemicals Maker

Fairlawn, OH, Sept. 22, 2010--Omnova Solutions said it is pursing a $300 million purchase of French chemicals manufacturer Eliokem International.

Omnova said it negotiated a deal with AXA Private Equity to acquire the firm by the end of the year.

Closing of the proposed transaction is subject to consultation with Eliokem's Works Council in France and other items.

Omnova said it intends to raise $425 million of new long term debt to fund the transaction and the repayment of all existing Omnova and Eliokem debt.
 
"This acquisition will transform Omnova Solutions into a much larger, more diverse specialty chemical and functional surfaces company with significantly enhanced global capability," said Omnova CEO Kevin McMullen.

Eliokem is a worldwide producer of specialty polymers and chemicals, including coating resins, elastomeric modifiers, antioxidants, rubber reinforcing resins, oil and gas drilling chemicals, and latices for specialty applications.

Eliokem, headquartered near Paris, has sales for the last 12 months of about $268 million.

The deal gives Omnova a greater presence in Asia. Eliokem's has more than 40% of its sales in higher growth emerging markets, as well as two manufacturing sites in China and one in India.