Specialty chemicals producer Omnova Solutions (Fairlawn, Ohio / USA; www.omnova.com) plans to acquire Eliokem (Villejust / France; www.eliokem.com) for EUR 227.5m.

Eliokem produces specialty polymers and chemicals such as coating resins, elastomeric modifiers, antioxidants, rubber reinforcing resins and specialty latex and has manufacturing sites in China, India, France and the US. The company is owned by Axa Private Equity (www.axaprivateequity.com), and is the former specialty chemicals business of Goodyear.
For the 12 months to May 2010, Eliokem reported EBITDA and sales of approximately USD 50m and USD 268m respectively.

Combining Omnova and Eliokem will create a business with sales of more than USD 1 bn of which some 40% will be outside the US, said Omnova. "This acquisition will transform Omnova Solutions into a much larger, more diverse specialty chemical and functional surfaces company with significantly enhanced global capability," said Kevin McMullen, chairman and CEO of the US group. "It is an excellent fit with Omnova's strategy to grow in existing markets, penetrate new adjacent markets and globalise our company."

The transaction is subject to regulatory approvals, financing conditions and consultation with Eliokem’s works council in France and is expected to be completed by the end of 2010. Omnova plans to raise USD 425m of long term debt to fund the transaction and the repayment of all existing Omnova and Eliokem debt.