Oslo, 14 April 2020: Elkem ASA has now closed the previously announced
acquisition of Polysil, a leading Chinese silicone elastomer and resins material
manufacturer.
Polysil has strong positions in baby care and food grade silicones, as well as
silicone products for the electronics and medical markets. Polysil and Elkem's
complementary product and market positions provide a solid platform for further
specialisation and growth in China and globally.
"We continue to develop Elkem's competitive positions, at the same time as we
work to safeguard our business in light of the coronavirus situation. The
financial closing of the Polysil acquisition represents an important milestone,
strengthening our position in specialised silicones segments in China, in line
with our growth and specialisation strategy. Today's macro environment
highlights the value of being a global specialty player across regions," says
Michael Koenig, CEO of Elkem ASA.
Approximately 90 per cent of Polysil's revenues are generated in China,
primarily in South China. Elkem's capabilities and positions in other parts of
China and internationally provide a solid platform for Polysil's products and
further growth. Elkem's production in China is back around normal capacity
levels, after experiencing delayed start-up after Chinese New Year due to the
coronavirus situation.
"Polysil's products and market positions in food, baby care, electronics and
medical markets are complementary to Elkem. There is significant potential in
utilising Polysil's high-end liquid silicones rubber and pressure sensitive
adhesives specialty positions and in further developing both products and
markets. Polysil's strong research and development capabilities will be very
important for development of products for both the Chinese market and globally.
This continues also in the current macro environment," says Frederic Jacquin,
Senior Vice President for Elkem's Silicones division.
Polysil has more than 350 employees located in Zhongshan in Guangdong, China.
The company has leading technology positions in production and development of
Heat Cured Rubber (HCR), Liquid Silicone Rubber (LSR) and specialty resin and
Pressure Sensitive Adhesives (PSA). Polysil has two production facilities and a
research and development centre with more than 50 scientists.
"Polysil is excited to join the Elkem family. The management team of Polysil is
very pleased to stay with the company in the next stage. We are confident to
further develop and integrate our business with Elkem's worldwide platform,
bring more value to our customers, and create a brighter future together," says
Hanyong Ma, the current and future general manager of Polysil.
The transaction was announced 30 December 2019. In 2019, Polysil delivered a
total operating revenue of RMB 624 million with earnings after tax of RMB 95
million. The companies have agreed an enterprise value for Polysil of up to RMB
941 million, including potential earn-out dependent on pre-agreed parameters.
All regulatory approvals for the acquisition have been concluded and the
settlement of the transaction took place 1 April 2020. Polysil will be
consolidated into Elkem's financial statement with effect from 1 April 2020.
For further information:
Odd-Geir Lyngstad, VP Finance & Investor Relations
Tel: +47 976 72 806
Email: odd-geir.lyngstad@elkem.no
Fredrik Norman, VP Corporate Communications & Public Affairs
Tel: +47 918 66 567
Email: fredrik.norman@elkem.no
About Elkem
Founded in 1904, Elkem is one of the world's leading suppliers of silicon-based
advanced materials with operations throughout the value chain from quartz to
specialty silicones, as well as attractive market positions in specialty
ferrosilicon alloys and carbon materials. Elkem is a publicly listed company on
the Oslo Stock Exchange (ticker code: ELK) and is headquartered in Oslo. The
company has more than 6,370 employees with 29 production sites and an extensive
network of sales offices worldwide. In 2019 Elkem had revenues of NOK 22.7
billion. To learn more, please visit www.elkem.com