Chemicals Maker Omnova Buys Eliokem
December 13, 2010
Omnova Solutions Inc. announced it completed the acquisition of specialty chemicals maker Eliokem International from Axa Private Equity, reports the Associated Press. Omnova valued the deal at 227.5 million Euros ($302 million), but that included Eliokem''s debt and was subject to adjustments for working capital and capital spending. Omnova, which makes chemicals used in coatings for high-end paper and packaging, carpet and other products, said the deal would be neutral or slightly reduce earnings in 2011 but add to earnings in 2012. Eliokem, founded in 2001 from the divestiture of the specialty chemicals business of Goodyear Tire & Rubber Co., is based in Villejust, France, near Paris. It has plants in the U.S., France, India and China. Omnova said buying Eliokem would let it enter fast-growing markets in Asia. Omnova expects more than 40 percent of its sales to be outside the United States.