Bostik Acquires U.S.-Based XL Brands

Bostik has acquired XL Brands, a US flooring adhesive company. The acquisition will enable Bostik to provide comprehensive solutions in this increasingly growing high-value market segment. The purchase price of USD 205 million corresponds to the enterprise value, or 11 times current EBITDA (7 times within 4 to 5 years including synergies). Based in Dalton, Georgia, XL Brands operates a highly competitive and state-of-the-art production facility and offers innovative and environmentally friendly solutions that complement Bostik's product range in North America. These include parquet flooring adhesives, floor preparation, sealants and similar products. This complementary acquisition, which follows the completion of the CMP brand takeover in May, will help position Bostik as one of the leaders in US flooring adhesives. The proposed acquisition is expected to close by the end of 2017 and remains subject to approval from antitrust authorities in accordance with applicable regulations. Through this transaction, Arkema is actively pursuing its development strategy of exceeding one-third of group adhesives sales by 2023.