Synthomer plc, a United Kingdom-based specialty chemical company acquires OMNOVA Solutions Inc. into a definitive agreement for $10.15 per share in cash. The offer price represents a premium of 52% over OMNOVA's three-month weighted average share price of $6.67. The transaction has been approved unanimously by the OMNOVA and Synthomer boards of directors.
The Partnership
OMNOVA Chief Executive Officer Anne Noonan said, “We are pleased that Synthomer recognizes the hard work of our employees in executing our multi-year transformation into a leading global specialty solutions provider.”
OMNOVA complements Synthomer culturally, geographically and by market, while Synthomer's financial position provides for a very strong combined company that will be well positioned to accelerate growth. This transaction presents increased opportunities for the business and its employees to leverage the combined scale, grow more quickly and profitably, and enhance product innovation in ways that will benefit customers and employees," Noonan added.
Omnova's fiscal 2019 second quarter earnings
The company also reported its second quarter fiscal 2019 earnings, which included the 10th consecutive quarter of year-over-year volume growth in its Specialty Solutions segment. Net sales for the quarter were $205.7 million, approximately flat to last year's $206.3 million.
Overall volume was favorable by $6.2 million, or 3%, as the benefit from the OMNOVA Portugal acquisition offset declines in Performance Materials that were primarily due to the Company's strategic exit from commodity paper chemicals. Price and mix had an unfavorable impact on net sales of $2.5 million, or 1.2%, primarily in Performance Materials. Currency translation was unfavorable by $4.3 million, or 2.1%.
Source: OMNOVA Solutions Inc.