Petronas to Acquire Perstorp for €1.54 Billion

18.05.2022 - Malaysian petrochemicals giant Petronas Group (PCG) has conditionally agreed to acquire all of Swedish chemical producer Perstorp from Financière Forêt, a European private equity investor belonging to PAI Partners.

The transaction, which is still subject to regulatory and shareholder approvals, will be priced at €1.54 billion cash, based on an enterprise value of €2.3 bn for the Malmö-based company. Closing is expected in the second half of 2022.

Focused on the three niche markets Resins & Coatings, Engineered Fluids and Animal Nutrition, Perstorp has a global sales presence and seven manufacturing sites in Europe, the US and China. An eighth site is due to be added in India in 2023.

The Swedish company that supplies more than 130 chemical products to  over 2,600 customers globally regards itself as the market leader for trimethylolpropane (TMP) and pentaerythritol (Penta). Known worldwide for its proprietary oxo and polyol chemistries, Pestorp reported sales of €1.3 billion in 2021, with EBITDA of €248 million and an EBITDA margin of 18.6%.

The two chemical producers complement each other well, Perstorp’s president and CEO Jan Secher said, adding that by tapping into PCG’s strength and market-leading position in Asia Pacific the Swedish player will achieve the scale needed to increase the pace of innovation and accelerate its sustainable transformation.

For PCG, managing director and CEO Mohd Yusri Mohamed Yusof said Perstorp is an “outstanding strategic fit,” giving Petronas access to attractive end-markets such as paints and coatings, construction, plastic additives, personal care and food, feed & nutrition.

Mohd Yusri said the Malaysian group wants to make Perstorp its platform for growth in specialty chemicals. Moreover, he said the acquisition will provide Petronas with the critical talent, know-how, technological platforms and proven customer channels it needs to address the pressing needs of the market for more eco-friendly and sustainable solutions and accelerate its sustainability journey toward achieving a circular economy and carbon neutrality by 2050.

The PCG chief said the deal with Perstorp will contribute about 28% in incremental revenue to the Petronas group, based on 2021 results, and will also support its medium-term goal to generate 30% of its revenue from non-traditional businesses by 2030.

The acquisition of Perstorp follows PCG’s 2019 takeover of BRB Group, a globally oriented independent producer and formulator of silicones, lube oil additives and chemicals.