Elkem ASA announced that it has completed the acquisition of Guangdong Polymer Technology Co., Ltd., the leading manufacturer of silicone elastomer and resin materials in China.
Polymerization technology has a strong strength in infant care and food grade organosilicon and organosilicon products used in electronic and medical industries. The complementary effect of converged technology and ekon in products and markets provides a solid platform for further specialization and development in China and even in the world.
Michael Koenig, chief executive officer of Elkem, said: "the acquisition of polymer technology is an important milestone for Elkem, which is in line with the company's special product development strategy, enhances the technical strength of downstream special silicone technology and expands the competitive advantage of Elkem. At the same time, the current macro environment highlights the value of multinational manufacturers of special materials. We will also pay close attention to the development trend of global epidemic situation, and flexibly adjust strategic policies to protect the business development of the company. "
About 90% of its revenue comes from China, mainly in South China. The ability and position of Elkem in other regions of China and global market provide a solid platform for the product and further development of converged technology. Due to the influence of the coronavirus, the resumption of work after the lunar new year was delayed, and now Ekin's production in China has returned to the normal level.
Frederic Jacquin, global senior vice president, organic silicon business unit of Ekin, said: "the products of polymerization technology and its position in the food, baby care, electronic and medical markets are complementary to Ekin. Polymerization has great development potential in the market position of high-end liquid silicone rubber and pressure-sensitive adhesive special materials, and also has great potential for further development of products and markets. The strong R & D capability of polymerized technology is essential for product development in China and the global market. This capability is extremely beneficial to the company in the macro environment under the current epidemic crisis. Most of polymerized technology's businesses are not affected by the epidemic. "
Poly technology has more than 350 employees in Zhongshan City, Guangdong Province, China. The company has a leading technical position in the production and development of heat cured rubber (HCR), liquid silicone rubber (LSR) and special resin and pressure sensitive adhesive (PSA). It has two factories and a research and development center with more than 50 scientific researchers.
Ma Hanyong, the current general manager of polymerization technology, said: "I'm glad that polymerization technology can join the ekon family. Our management team is very happy to stay in the company, and we are confident to further develop our business and integrate it with the global platform of Elkem, so as to bring more value to our customers and create a better future together. " After the acquisition, Ma Hanyong will continue to serve as the general manager.
The transaction was announced on December 30, 2019. The aggregate total operating revenue in 2019 is RMB 624 million, and the after tax profit is RMB 95 million. According to the agreement reached by the two companies, the aggregated company's valuation is up to 941 million yuan, including the potential income determined according to the results of the negotiation.
The acquisition has passed all regulatory approvals. The settlement of the transaction was completed on April 1, 2020, and the aggregation will be incorporated into Ekin's financial statements from April 1, 2020.