LA DEFENSE (dpa-AFX) - French oil and gas giant Total SA (TTA.L, TTFNF.PK, TOT) said that it received an offer from the French group Arkema (ARKAY.PK) to acquire its Bostik affiliate, a global adhesives company. Arkema's offer values Bostik at 1.74 billion euros or around $2.25 billion, representing 11 times the company's EBITDA.
The proposed transaction is subject to approval by the relevant antitrust authorities.
In 2013, Bostik reported revenue of 1.5 billion euros. Bostik employs 4,900 people worldwide through its 48 production facilities (18 in Europe, 10 in North America, 8 in Asia, 6 in Australia and New Zealand, 2 in Africa and 4 in South America).
With the proposed acquisition of Bostik, Arkema said it would achieve proforma sales of some 7.6 billion euros while increasing its headcount to some 19,000 people. This project would also entail increasing the divestment program of non-core activities representing some 500 million euros additional sales. Taking into account the proposed acquisition of Bostik and the contemplated divestment program, the Group raises its 2017 EBITDA target to 1.310 billion euros.
Copyright RTT News/dpa-AFX