Kuala Lumpur-headquartered Petronas Chemicals Group Berhad (PCG) and Sweden’s Perstorp Group announced today that PCG signed a securities purchase agreement on 14 May 2022 to acquire the entire equity interest in Perstorp Holding AB. The petrochemical group entered the agreement with Financière Forêt SARL, a company under PAI Partners, a European private-equity firm.
The acquisition is priced at €1.54 bn in cash, based on an enterprise value of €2.3 bn, and is subject to all relevant regulatory and shareholders’ approvals.
“This landmark acquisition is a major milestone for PCG,” said PCG Managing Director/Chief Executive Officer, Ir. Mohd Yusri Mohamed Yusof.
“Perstorp is an outstanding strategic fit for PCG and enables us to participate in attractive end-markets such as paints & coatings, construction, automotive, personal care and animal nutrition that share a robust growth outlook. This acquisition will also provide us critical talent, know-how, technological platforms and proven customer channels to address the pressing needs of the market for more sustainable solutions.”
PCG is following a clear strategy towards realising its vision of becoming a provider of innovative customer solutions. To that end, the company is working to strengthen its basic petrochemicals portfolio, and to selectively diversify into derivatives, specialty chemicals and solutions. the acquisition of Perstorp group marks the creation of a significant specialty chemicals portfolio - and will enhance PCG’s overall earnings. Perstorp will add up to 2.3 million metric tonne per annum to PCG’s production capacity and immediately contribute about 28% incremental revenue to PCG based on 2021 results as well as support PCG’s medium-term goal of establishing 30% revenue generated from non-traditional businesses by 2030.
Perstorp was established more than 140 years ago and the company has grown into a leading niche specialty chemicals player that develops sustainable solutions for the Resins & Coatings, Engineered Fluids and Animal Nutrition markets. The company has a global sales presence, seven state-of-the art manufacturing sites in Europe, US and China (the 8th plant will be ready in India in 2023) and three research and development (R&D) centres worldwide with approximately 1,500 employees serving more than 2,600 customers globally.
The acquisition by PCG will give the company a leg up in the markets of the Asia Pacific region, providing ‘scale to increase the pace of innovation and accelerate our sustainable transformation’ according to Jan Secher, President and CEO of Perstorp.
“PCG’s and Perstorp’s businesses complement each other very well,” he noted.
Perstorp is known in the industry for its sustainability strategy and pro-environment products and solutions. Its sustainability focus has enabled the development of such solutions as the production of sustainable methanol from carbon dioxide, residue streams, biogas and green hydrogen at the Stenungsund site, slated to replace a large portion of its fossil-based methanol feedstock by 2026.
“With Perstorp’s holistic and innovative approach to reduce environmental impact in line with PCG’s aim for positive environmental and social contributions, we are confident that together we can accelerate our sustainability journey towards circular economy and carbon neutrality by 2050,” said Mohd Yusri Mohamed Yusof.