Advent-backed Roehm agrees to buy SABIC’s polycarbonate sheet business

FRANKFURT, Dec 7 (Reuters) – Private equity firm Advent International has completed talks to buy the polycarbonate sheet business of Saudi Basic Industries Corp (2010.SE) (SABIC), two sources familiar with the situation told Reuters. .

The deal, expected to be worth about $300 million, is subject to antitrust approval, the sources said. Barclays is the sell-side advisor.

The deal is an add-on to Advent’s existing portfolio business, Roehm, which the company plans to use to develop its multipolymer business, one of the sources said.

Advent invested in methacrylates producer Roehm in July 2019. Roehm will acquire 100% of the SABIC division.

The same source added that an official announcement on the sale of the SABIC business, in a so-called “functional form”, is expected later on Wednesday.

All sources asked not to be identified because the matter has not been made public.

Polycarbonate sheets are clear thermoplastics that absorb very little moisture and are therefore resistant to impact damage as well as water damage, flame and chemicals. They have applications in fields such as healthcare and building materials.

SABIC, which is 70% owned by Saudi Aramco, began the process of divesting assets before the pandemic. Months of talks followed between the two parties, two sources said.

Advent has built up its chemical portfolio in recent years, including the €3 billion acquisition of the methacrylates business of German chemical company Evonik in 2019.

Advent and Barclays declined to comment. SABIC did not immediately respond to a request for comment.

The chemical industry has shown resilience this year in the face of a slowdown in global M&A deals, with Dutch specialty chemicals maker DSM striking a deal to buy Swiss flavor and fragrance maker Firmenich and sell it as it moves into food ingredients and nutraceuticals. Engineering Plastics Segment Market.

DSM announced at the end of May the sale of its engineered materials to Advent and German chemicals company Lanxess for 3.85 billion euros.

Reporting by Emma-Victoria Farr in Frankfurt, Editing by Barbara Lewis and David Evans

Our Standards: The Thomson Reuters Trust Principles.

Emma-Victoria Farr

Thomson Reuters

Has covered European M&A for Mergermarket, Bloomberg The Daily Telegraph and Deutsche Presse Agentur.

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