PETRONAS Chemicals acquires Sweden’s Perstorp for USD1.6B
Malaysia’s state-owned PETRONAS Chemicals Group Berhad (PCG) is acquiring Perstorp Holding AB, a 140-year old sustainability-driven specialty chemicals company based in Malmö, Sweden, for EUR1,538.0 million (USD1.6 billion). The acquisition values Perstorp at an enterprise value of EUR2,300 million (USD2.4 billion).
PETRONAS Chemicals Group announced that it has signed a Securities Purchase Agreement on 14 May 2022 to acquire the entire equity interest in Perstorp Holding AB with Financière Forêt S.à.r.l, a company under PAI Partners, a European private equity firm.
In the execution of this strategy, the acquisition of Perstorp Group marks the creation of a significant specialty chemicals portfolio for PETRONAS, while enhancing PCG’s overall earnings. This transaction follows the acquisition of BRB Group in 2019, a leading global independent producer and formulator of silicones, lube oil additives and chemicals, which launched PCG into new areas aligned with its long-term growth ambitions.
Perstorp is a leading niche specialty chemicals player that develops sustainable solutions with focus on 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, the U.S. and China. Its eighth plant will be ready in India in 2023. It has three research and development (R&D) centres worldwide. It has approximately 1,500 employees and serves more than 2,600 customers globally with its 130 product offerings within 30 product groups. Perstorp has a leading global position in several products such as Trimethylolpropane (TMP) and Pentaerythritol (Penta).
“This landmark acquisition is a major milestone for PCG in establishing a key platform to diversify into the specialty chemical industry and capture new growth opportunities, whilst enabling us to future proof our business against market cyclicality and volatility,” said PCG Managing Director/Chief Executive Officer, Ir. Mohd Yusri Mohamed Yusof. “This acquisition will also provide us with critical talent, know-how, technological platforms and proven customer channels to address the pressing needs of the market for more eco-friendly and sustainable solutions.”
“We find Perstorp attractive for their expansive range of products, established customer base as well as their market leadership in selected chemicals, which are complementary to PCG. It is our intention to make Perstorp our growth platform into the specialty chemicals field. With Perstorp’s holistic and innovative approach to reduce environmental impact in line with PCG’s aim for positive environmental and social contribution, we are confident that together we can accelerate our sustainability journey towards circular economy and carbon neutrality by 2050,” he said.
“By tapping into PCG’s strength and market leading position in the Asia Pacific region, we are confident that Perstorp can continue to develop into its next phase of growth. Being part of PCG means Perstorp gets the scale to increase the pace of innovation and accelerate our sustainable transformation, which is at the forefront of the chemical industry,” said Jan Secher, president and CEO of Perstorp.
PCG’s journey to achieve its vision of becoming the preferred chemical company providing innovative customer solutions is based on a clear strategy; to strengthen its basic petrochemicals portfolio, and to selectively diversify into derivatives, specialty chemicals and solutions.
The completion of the acquisition is subject to relevant regulatory and shareholders’ approvals.