CVC Weighs Bid for $3 Billion Chemical Maker Synthomer

(Bloomberg) -- CVC Capital Partners has been exploring a bid for U.K. chemical producer Synthomer Plc, people with knowledge of the matter said.

The private equity firm made an initial approach to London-listed Synthomer to gauge its interest in a deal, according to the people, who asked not to be identified because the information is private. The two parties aren’t currently holding any negotiations, one of the people said.

Synthomer’s board in a statement Wednesday said there are no discussions regarding a possible offer for the company.

Shares of Synthomer have risen 46% over the past 12 months, giving it a market value of about 2 billion pounds ($2.8 billion). The company is one of the world’s largest suppliers of latex for medical gloves, which have seen booming demand during the coronavirus pandemic. Synthomer also produces materials used in specialty packaging tape, artificial sports turf, bedding foam and paint.

A sale of Synthomer would add to the $3.1 billion of chemical deals involving European companies in 2021, a figure that’s already up 74% from a year earlier, data compiled by Bloomberg show. Deliberations are ongoing, and there’s no certainty they will lead to a transaction, according to the people.

A representative for CVC declined to comment.

Synthomer said last month that Chief Executive Officer Calum MacLean will step down from his role by January 2022. MacLean has been in charge since 2015, overseeing a business that employs about 4,750 people globally, according to its website.

Under MacLean, Synthomer has been actively pursuing M&A opportunities, buying Ohio-based additives maker Omnova Solutions in 2020 for almost $750 million, one of four purchases over the past five years.

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