- The acquisition is a key step towards the specialty chemicals industry by National Petroleum & Chemical Corporation of Malaysia ("Ma petrochemicals").
- The transaction will contribute approximately 28% of The Incremental Revenue to Ma Petrochemicals, which is good for the development of Malaysia's specialty chemicals industry and the economy in the long run
- Perstorp will strengthen MA's decarbonisation process to help it achieve its Sustainable Development Goals
KUALA LUMPUR, May 27, 2022 /PRNewswire/ -- Recently, Ma Petrochemical signed a share purchase agreement to acquire a wholly-owned stake in Perstorp Holding AB. The agreement was signed with Financiere Foret S.a.r.l, a subsidiary of European private equity firm PAI Partners. Perstorp is a leading global, sustainability-driven specialty chemicals company. The acquisition of the Perstorp Group is worth EUR 2.3 billion (approximately MYR 10,496.1 million/ approximately RMB16.08 billion).
Signing site: Seats from left to right for Ma Petrochemical CEO Ir. Mohd Yusri Mohamed Yusof; PAI Partner representative Fabrice Fouletier; Standing from left to right is Ma Petrochemical Chief Financial Officer Mohd Azli Ishak; Perstorp President and CEO Jan Secher; and PAI Partner representative Ragnar Hellenius
Ma Petrochemical strives to be the preferred company to provide innovative solutions to customers. This objective was developed on the basis of Ma Petrification's strategy to strengthen its portfolio of basic petrochemical products and selectively diversify in derivatives, specialty chemicals and solutions. In the implementation of this strategy, the acquisition marks the creation of a significant specialty chemicals portfolio while also improving the overall revenue of Ma Petrochemical. This is another acquisition following the 2019 acquisition of BRB Group, the world's leading independent producer and formulation manufacturer of silicones, lubricant additives and chemicals, which opens up new areas for Ma Petrochemical to enter in line with its long-term development goals.
Ma Petrochemical CEO Ir Mohd Yusri Mohamed Yusof said: "This landmark acquisition is significant for MA Petrochemical, which provides a key platform for MA petrochemicals to diversify into the specialty chemicals industry and seize new growth opportunities, while enabling our business to withstand cyclical and volatile markets in the future. "
"Perstorp is an outstanding strategic choice for Ma Petrochemicals, allowing us to participate in attractive end markets such as paints and coatings, construction, automotive, personal care and animal nutrition. The development prospects of these end markets are good and the growth momentum is strong. The acquisition also provides us with the key talent, expertise, technology platform and proven customer pipeline to respond to the market's urgent need for more sustainable solutions." "
Headquarters in Perstorp in Sweden
Founded more than 140 years ago, Perstorp is a leading specialty chemicals company dedicated to developing sustainable solutions focused on the resin and coatings, engineered fluids and animal nutrition markets. The company has seven state-of-the-art production sites and three R&D centers around the world, covering 26 countries including the United States, Europe and the Asia-Pacific region, with about 1,500 employees, and provides more than 2,600 customers worldwide with 130 products in 30 product groups, many of which occupy the world's first position, such as trimethylolpropane (TMP) and pentaerythritol (Penta). Perstorp is highly valued by customers for its high-quality products and customizable service, reliable supply, customer-centric philosophy and sustainable products, and is recognized in the industry for its proprietary oxidation and polyol chemicals. In fiscal 2021, Perstorp recorded earnings of approximately EUR 1,334 million (approximately MYR6.54 billion/ or RMB9.57 billion) and EUR 248 million (approximately MYR1,214 million/ EBITDA) of EBITDA, with an EBITDA margin of 18.6%.
Ir. Mohd Yusri said: "We believe that Perstorp has attracted us because of its broad product range, mature customer base and leading position in the specialty chemicals market, which complements Ma Petrochemical. Perstorp will add 2.3 million metric tons of production capacity to MA Petrochemical per year and contribute approximately 28% of its incremental revenue to MA Petrochemical on top of its 2021 performance. At the same time, it can help Ma Petrochemical achieve its medium-term goal of 30% of total business revenue by 2030. In addition, the acquisition will also contribute to the development of Malaysia's specialty chemicals industry and contribute to the economic development in the long run. We look forward to and welcome Perstorp and its outstanding team to our MA PETROCHEMICAL family." "
Jan Secher, President and CEO of Perstorp, said: "We are delighted to be part of the Petronas family. I believe that we have a lot in common in terms of how we move our respective businesses forward and meet the challenges and opportunities ahead. With Petronas' strong global brand and Petrochemical Malaysia's industry reputation and market leadership in the Asia-Pacific region, we believe Perstorp will see even greater growth in the next phase. "
Perstorp has an industry-leading sustainability strategy and is known for its environmentally friendly products and solutions, which are an integral part of the sustainability transformation process for many industries and end products. Following this strategy, Perstorp has developed a number of solutions, for example, at the Stenungsund site to produce sustainable methanol from carbon dioxide, residues, biogas and green hydrogen to replace most of the fossil-based methanol feedstock by 2026. This approach can be described as subverting tradition and reversing the pattern.
"Perstorp's comprehensive and innovative approach to reducing environmental impact is in line with MA Petrochemical's goal of actively contributing environmentally and socially, and we are confident that together we will accelerate our sustainability journey to achieve a circular economy and carbon neutrality by 2050." Ir. Mr. Mohd Yusri concluded.
The completion of the acquisition will require final approval from the relevant regulatory authorities and shareholders.