Bostik acquires XL Brands in flooring adhesives in the United States
- Proposed acquisition of the assets of XL Brands, a leader in floor covering adhesives in the United States, that will allow Bostik to offer comprehensive solutions in this growing high added value market.
- Offer based on a US$205 million enterprise value, i.e. 11 times current EBITDA (7 times within 4 to 5 years and including synergies).
XL Brands is a leader in adhesives for resilient and soft flooring in the United States. With a highly competitive and brand new production facility in Dalton (Georgia), XL Brands offers innovative and environmentally friendly solutions that are fully complementary to Bostik’s product range in the United States (hardwood flooring adhesives, floor preparations, sealants, etc.).
This bolt-on acquisition, which complements the acquisition of CMP last May, will help Bostik become one of the leaders in floor covering adhesives in the United States. This proposed acquisition is expected to close end 2017 and is subject to regulatory approval by antitrust authorities.
With this transaction, Arkema actively pursues its development strategy in adhesives, which should exceed one third of the Group’s sales by 2023.