Arkema Inc. (Colombes, France) announced its proposed acquisition of PI Advanced Materials (PIAM), a South Korean business producing plastic films, primarily polyimide film, for €728 million enterprise value. Arkema will acquire Glenwood Private Equity’s 54% stake in the listed South Korean company and will be fully consolidated in Arkema’s accounts.
With sales of over €200 million, an EBITDA margin of around 30%, and best in class manufacturing, PIAM is the global leader in polyimide films, delivering superior growth in the consumer electronics and electric vehicles markets. Arkema expects its acquisition of PIAM to make the company a player in the specialty materials market, as well as broaden its polymer range in the advanced materials market.
“PIAM is an outstanding company with a unique technological positioning, state-of-the-art manufacturing facilities with invaluable customer relationships,” says Thierry Le Hénaff, Arkema’s chairman and chief executive officer. “This acquisition is fully aligned with our strategy to be at the forefront of high performance materials for high growth end markets supported by megatrends such as electric vehicles and advanced electronics. After the divestment of PMMA, the acquisition of Ashland adhesives and the current start-up of our bio PA11 plant in Singapore, Arkema is delivering another significant milestone of its strategy focused on innovative materials for a sustainable world.”
With two state-of-the-art industrial production sites and two R&D centers in South Korea, PIAM employs approximately 320 people. The company enjoyed strong sales growth of 12% per year on average in the 2012-2021 period, focusing on top quality and high value added products. PIAM sales are expected to grow by around 13% per year in the coming years, supported by its robust innovation pipeline and successful customer qualifications in 5G antennas and high-resolution OLED displays, as well as by strong growth in applications such as flexible screens.
The deal, which is subject to the approval of Chinese and Korean anti-trust authorities, should be finalized by the end of 2023.
Source: Arkema, www.arkema.com.