FAIRLAWN, Ohio (AP) -- Omnova Solutions Inc. said Thursday it completed the acquisition of specialty chemicals maker Eliokem International from Axa Private Equity.
Omnova valued the deal at 227.5 million Euros ($302 million), but that included Eliokem's debt and was subject to adjustments for working capital and capital spending.
Omnova, which makes chemicals used in coatings for high-end paper and packaging, carpet and other products, said the deal would be neutral or slightly reduce earnings in 2011 but add to earnings in 2012.
The company issued $250 million in senior notes due in 2018 and replaced a $150 million term loan with a $200 million one in connection with the purchase.
Eliokem, founded in 2001 from the divestiture of the specialty chemicals business of Goodyear Tire & Rubber Co., is based in Villejust, France, near Paris. It has plants in the U.S., France, India and China.
Omnova said buying Eliokem would let it enter fast-growing markets in Asia. Omnova expects more than 40 percent of its sales to be outside the United States.
Shares of Omnova fell 33 cents, or 3.7 percent, to close at $8.57.
Omnova valued the deal at 227.5 million Euros ($302 million), but that included Eliokem's debt and was subject to adjustments for working capital and capital spending.
Omnova, which makes chemicals used in coatings for high-end paper and packaging, carpet and other products, said the deal would be neutral or slightly reduce earnings in 2011 but add to earnings in 2012.
The company issued $250 million in senior notes due in 2018 and replaced a $150 million term loan with a $200 million one in connection with the purchase.
Eliokem, founded in 2001 from the divestiture of the specialty chemicals business of Goodyear Tire & Rubber Co., is based in Villejust, France, near Paris. It has plants in the U.S., France, India and China.
Omnova said buying Eliokem would let it enter fast-growing markets in Asia. Omnova expects more than 40 percent of its sales to be outside the United States.
Shares of Omnova fell 33 cents, or 3.7 percent, to close at $8.57.
