The flexible packaging laminating adhesives business provides a range of solutions for food and medical applications, as well as industrial lamination

Dow

Dow to sell its flexible packaging laminating adhesives business to Arkema. (Credit: Dow)

French speciality materials company Arkema has agreed to acquire the flexible packaging laminating adhesives business of material science company Dow for $150m.

The flexible packaging laminating adhesives business has been part of Dow’s packaging and speciality plastics segment. It provides a range of solutions for food and medical applications, as well as industrial lamination.

The unit supplies brands like ADCOTE and MOR-FREE across North America and Europe using its production facilities in Italy, the US, and Mexico.

According to Dow, the deal will increase its focus on core, high-value downstream businesses.

Additionally, the funds generated will strengthen Dow’s capital allocation objectives and support the company’s growth and shareholder value.

Dow will retain its water-based laminating adhesives and acrylic adhesives businesses within the packaging and speciality plastics segment.

The material science firm will keep offering adhesive solutions via its Dow Consumer Solutions and MobilityScience.

Dow chair and CEO Jim Fitterling said: “In line with Dow’s best-owner mindset, we are focused on proactively managing our asset portfolio to invest in businesses with competitive positions in attractive markets.

“Proceeds will help us advance our long-term Decarbonize & Grow and Transform the Waste strategies designed to capture more than $3bn in annual earnings growth by 2030.”

Under the transaction, Dow’s five manufacturing sites will be transferred to Arkema. These sites produce solvent-based laminating adhesives, solventless laminating adhesives, and heat seal coatings product families.

Arkema said the proposed acquisition will expand its portfolio of flexible packaging solutions.

Arkema chairman and CEO Thierry Le Hénaff said: “We are very happy to announce this great acquisition which is perfectly in line with Arkema’s strategy to offer its customers innovative products with high technological content and continue to grow in the attractive adhesives segment.

“It will allow the Group and Bostik to broaden its commercial and geographic presence in packaging and complete its product ranges in this demanding and rapidly evolving market, notably regarding sustainable development challenges.

The deal is anticipated to conclude by the end of this year, subject to regulatory approval.