Arkema buys Dow’s adhesives unit for $150 million

In a significant industrial move, Arkema, the French specialty chemicals giant, has successfully acquired Dow’s flexible packaging laminating adhesives division for a notable $150 million. This acquisition, finalized on December 2, 2024, is set to enhance Arkema’s foothold in the flexible packaging sector, which is valued at $250 million in annual revenues.

The integration of Dow’s adhesives business brings with it advanced technologies and a robust global infrastructure, including five high-tech production sites located in Italy, the United States, and Mexico. This strategic acquisition not only broadens Arkema’s product range but also positions it as a vital player within this lucrative market, catering to food, medical, and industrial lamination applications.

Arkema anticipates achieving approximately $30 million in EBITDA synergies over the next five years, reinforcing its competitive edge in specialty materials. With Dow’s established reputation and well-known brands, Arkema expects to complement its existing lineup and significantly enhance its technological capabilities within the adhesives sector.

Thierry Le Hénaff, Arkema’s chairman and CEO, expressed his enthusiasm about this acquisition, highlighting the unique opportunity it presents for both integration and growth within the packaging industry. Arkema aims to leverage its material science expertise to meet the rising demand for innovative and sustainable solutions, systematically transitioning into a dedicated player in the Specialty Materials domain.

In 2023, Arkema reported impressive sales of around €9.5 billion, showcasing its global reach across approximately 55 countries with a workforce of 21,100 employees. Through this acquisition, the firm is poised to tap into new growth opportunities while fostering close collaborations with stakeholders across the spectrum. The deal signals a significant advancement for Arkema as it seeks to solidify its position among the key partners in the packaging realm, particularly as markets evolve and demand for sustainable materials escalates.