·  Acquisition is a key platform for PCG’s step out strategy into the specialty chemicals industry
· The deal will immediately contribute about 28% incremental revenue to PCG and strengthen Malaysia’s specialty chemicals industry, benefitting the economy in the long run
·  Perstorp will strengthen PCG’s decarbonisation efforts towards its sustainability goals 

KUALA LUMPUR, May 18 (Bernama) -- PETRONAS Chemicals Group Berhad (PCG) signed a Securities Purchase Agreement on 14 May 2022 to acquire the entire equity interest in Perstorp Holding AB, a leading sustainability-driven global specialty chemicals company with Financière Forêt S.à.r.l, a company under PAI Partners, a European private equity firm. The acquisition values Perstorp Group at an enterprise value of EUR2,300.0 million, which is equivalent to RM10,496.1 million.
 
PCG’s journey to achieve its vision of becoming the preferred chemical company providing innovative customer solutions is based on a clear strategy; to strengthen its basic petrochemicals portfolio, and to selectively diversify into derivatives, specialty chemicals and solutions. In the execution of this strategy, this acquisition marks the creation of a significant specialty chemicals portfolio, while enhancing PCG’s overall earnings. This follows the acquisition of BRB Group in 2019, a leading global independent producer and formulator of silicones, lube oil additives and chemicals, which launched PCG into new areas aligned with its long-term growth ambitions.
 
“This landmark acquisition is a major milestone for PCG in establishing a key platform to diversify into the specialty chemical industry and capture new growth opportunities, whilst enabling us to future proof our business against market cyclicality and volatility,” said PCG Managing Director/Chief Executive Officer, Ir. Mohd Yusri Mohamed Yusof.
 
“Perstorp is an outstanding strategic fit for PCG and enables us to participate in attractive end-markets such as paints & coatings, construction, automotive, personal care and animal nutrition that share a robust growth outlook. This acquisition will also provide us critical talent, know-how, technological platforms and proven customer channels to address the pressing needs of the market for more sustainable solutions.”
 
Established more than 140 years ago, Perstorp is a leading niche specialty chemicals player that develops sustainable solutions with focus on the Resins & Coatings, Engineered Fluids and Animal Nutrition markets. With seven state-of-the-art manufacturing sites and three research and development (R&D) centres worldwide, Perstorp has presence in 26 countries including US, Europe and Asia Pacific. It has approximately 1,500 employees and serves more than 2,600 customers globally with its 130 product offerings within 30 product groups.  It has global #1 position in several products such as Trimethylolpropane (TMP) and Pentaerythritol (Penta). Perstorp is highly regarded among its customers for its product quality and customisation, supply reliability, customer centricity and sustainable products and is recognised for its proprietary oxo and polyol chemistries. In FY2021, Perstorp recorded approximately EUR1,334 million (RM6,540 million) in revenue and EUR248 million (RM1,214 million) in EBITDA with an EBITDA margin of 18.6%.
 
Added Ir. Mohd Yusri, “We find Perstorp attractive for their expansive range of products, established customer base as well as their market leadership in selected chemicals, which are complementary to PCG. Perstorp will add up to 2.3 million metric tonne per annum to PCG’s production capacity and immediately contribute about 28% incremental revenue to PCG based on 2021 results as well as support PCG’s medium-term goal of establishing 30% revenue generated from non-traditional businesses by 2030. In addition, this acquisition will also contribute towards strengthening Malaysia’s specialty chemicals industry, benefitting the economy in the long run. We are excited to welcome Perstorp and its exceptional team into PCG family.”
 
Jan Secher, President and CEO of Perstorp said, “We are excited about becoming part of the PETRONAS family. I see a strong commonality in values and priorities for how to take our respective businesses forward, meeting the challenges and opportunities in the future. By tapping into the PETRONAS strong global brand and PCG’s strength as a reputable industry and market leader in the Asia Pacific region, we are confident that Perstorp can continue to expand into its next phase of growth.”
 
Perstorp has an industry-leading sustainability strategy and is well-known its Pro-Environment products and solutions, that are used by and required for the sustainable transformation of many industries and end products. Through this strategy, Perstorp has developed a number of solutions such as the game-changing production of sustainable methanol from carbon dioxide, residue streams, biogas and green hydrogen at Stenungsund site to replace a large portion of its fossil-based methanol feedstock by 2026.
 
“With Perstorp’s holistic and innovative approach to reduce environmental impact in line with PCG’s aim for positive environmental and social contributions, we are confident that together we can accelerate our sustainability journey towards circular economy and carbon neutrality by 2050,” concluded Ir. Mohd Yusri.
 
The completion of the acquisition is subject to relevant regulatory and shareholders’ approvals.
 

Further details on PCG can be found at www.petronaschemicals.com 
 

 
About Perstorp
 
Perstorp believes in improving everyday life – making it safer, more convenient and more environmentally sound for billions of people all over the world. As a world leading specialty chemicals company, our innovations provide essential properties for products used every day and everywhere. You’ll find us all the way from your car and mobile phone to towering wind turbines and the local dairy farm. Simply put, we work to make good products even better, with a clear sustainability agenda.
 
Founded in Sweden in 1881, Perstorp’s focused innovation builds on more than 140 years of experience, representing a complete chain of solutions in organic chemistry, process technology and application development. Perstorp has approximately 1,500 employees and manufacturing units in Asia, Europe and North America. Sales in 2021 amounted to 13.5 billion SEK. learn more at www.perstorp.com 

Source: PETRONAS

FOR MORE INFORMATION, PLEASE CONTACT: 
Name: Yogeswari Thangavelu
Media Relations, Strategic Communications & Administration Department
PETRONAS CHEMICALS GROUP BERHAD (PCG)
Tel : (6) 017 2000919
Email : yogeswari.thangavel@petronas.com 

--BERNAMA