MOSCOW (MRC) -- Rohm, one of the leading manufacturers in the methacrylate business, has agreed to acquire the Functional Forms business of SABIC, subject to customary consultation with the respective works councils and approval of the antitrust authorities, said the company.
Rohm thereby adds Polycarbonate sheets and films to its existing range of PMMA sheets and films, further expanding its leading positions as a value-added partner for its customers across a wide range of applications.
“We are very excited to have found a strong partner with whom we can grow together,” explains Rohm’s CEO Michael Pack. “By adding the Polycarbonate Resin extrusion business to our portfolio, we will sustainably strengthen our competitiveness in our sheets and films business. With the combined competencies – in sales and in the development of materials, products and applications – we will become a better business partner for our customers."
Ronald Ayles, Managing Partner at Advent International, adds: “This is a unique opportunity for Rohm to build a global leader in this attractive segment and we are very happy to be able to back our portfolio company in executing this transformative acquisition”.
The Functional Forms business is a leading global manufacturer offering a broad portfolio of high-quality polycarbonate film and sheet products, predominantly marketed through the strong LEXAN™ brand which is globally recognized as one of the leading brands in its segment. Functional Forms has an extensive global presence with about 700 employees, operations in 19 countries and through various production sites strategically located across all continents.
The new combined business will have sales of more than € 700m, command a strong operational global footprint across 14 production sites and benefit from its complementary activities in similar but distinct markets: both, Rohm and SABIC’s Functional Forms business, manufacture high-quality sheet and film products that are used across a wide variety of industries, ranging from building and construction, consumer electronics, medicine to aviation. The acquisition is a key cornerstone of Rohm’s strategy to develop its transparent semi-finished products business into a leading global multi-polymer company. The strong brand LEXAN™ is an ideal complement to the acrylic glass brand PLEXIGLAS® (in the Americas under the registered trademark ACRYLITE).
Consultation with applicable works councils and unions in Europe is expected to be finalized in the upcoming months. Subject to regulatory approvals, and completion of the carve-out of the business from the rest of SABIC’s operations, the transaction is expected to close in the first half of 2024.
We remind, Roehm has disclosed the successful commissioning of its 20% methyl methacrylate (MMA) capacity expansion project in Shanghai, China. The initiative will support its methacrylates Verbund in Shanghai where the German methacrylates company is boosting capacity of polymethyl methacrylate (PMMA), sold under the Plexiglas brand. The new Meracryl MMA capacity will back the fast growth in Asia and improv supply dependability of bulk monomer.