Eastman recently announced that the company will be selling its Adhesive Resins business to Synthomer for a total of USD 1 billion. The sale will be consisting of hydrocarbon resins, pure monomer resins, rosins and dispersions, polyolefin polymers, and oleochemical and fatty acid based resins product lines. The business is currently a part of Eastman’s additives and functional products segment.
The Eastman chemicals has already divested its tire additives business and with the current sale of its adhesive resins business, the company will be looking forwards towards improving the performance of its additives and functional products segment.
With the acquisition, Synthomer will be looking towards a diversified product portfolio, end markets, and geographies. The acquisition of adhesive resins business from Eastman gives Synthomer a leading position in the growing global adhesives market and will help the company in extending its product portfolio of differentiated products and sustainable solutions.
Adhesive resins are materials which are used in the manufacturing adhesives which have major application in construction, automotive, electronics, furniture etc. There are various types of adhesive resins including Epoxy resins, Polyacrylic Ester, Polyvinyl Acetate, Synthetic Rubber, Polyamide, Polyurethane etc. the global demand for adhesive resins stood at around 5 million tonnes in 2020 and is expected to grow at a CAGR of around 4.14% during the upcoming years.
As per ChemAnalyst, “the acquisition of Eastman’s adhesive resins business by Synthomer is aimed at capturing the growing demand for adhesive resins globally. The acquisition comes in the back of a reviving construction sector globally. Hence, the acquisition is expected to benefit Synthomer in terms of diversification of its product portfolio and raising its production capacity for adhesive resins so that it can meet the growing demand of the adhesives market. The demand for adhesives is expected to grow due to a growing construction sector.