Thailand’s PTT Global Chemical buys Allnex Holding for $4.75bn
01:08, 13 July 2021
Thailand’s PTT Global Chemical said on Monday that it will acquire Frankfurt-based specialty chemical maker Allnex Holding from private equity firm Advent International Funds for €4bn ($4.75bn).
PTT Global Chemical said its unit will acquire 100% of Allnex Holding and the company’s loans.
The deal will be funded by cash on hand and a loan amounting up to THB73.92bn ($2.26bn) from its parent company, PTT. The interest rate on the two-year loan will be as much as 2.5% a year, the company said.
Diversification
PTT Global Chemicals said in a statement that the deal fits the company’s growth strategy with the aim to diversify towards the specialty chemical business.
Global refiners around the world are looking to diversify into the specialty chemical sector in search for less cyclical product portfolios and higher profit margins. Diversification remains a key goal for petro-based company as demand of electric vehicles rises. Petrochemicals are set to account for more than a third of the growth in world oil demand to 2030, and nearly half the growth to 2050, the International Energy Agency said in its 2018 report.
“The acquisition of the [Allnex Holding] highly fits to the company group’s growth strategy with the aim to diversify the company group’s business toward [the] specialties arena, specifically to increase profit contribution from and capture growth opportunities in high value business, which matches the global megatrend,” PTT Global Chemicals said in a statement.
Revenues up
Allnex Holding reported revenue of €1.90bn in year ended March 2021, up 3.6% from a year ago. Its net profit for the year ended March 2021 was €87.9m, up 22.3% from a year ago, according to PTT Global Chemical’s transaction filing.
Allnex Holding said in a press release that the deal will help the company further expand its presence in emerging markets and will benefit its global footprint.
The deal is expected to be completed in December 2021, PTT Global Chemicals said.
Shares of PTT Global Chemical dropped 6.4% on Monday after the announcement of the deal.