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Yule Catto buys PolymerLatex for €443m
Chemicals group Yule Catto & Co. plc has agreed to acquire Germany's PolymerLatex for a total transaction value of €443m (£376m).
Yule Catto announced a 4 for 3 rights issue at 116p per share to raise about £225m gross to help fund the acquisition.
The company said the acquisition was a 'compelling, transformational opportunity' to acquire a leading emulsion polymers franchise, giving it increased scale and market share, a broader product offering and an improved new product pipeline.
It believes the enlarged group will be able to achieve annual cost synergies of at least £20m.
The group also announced new credit facilities comprising a euro-denominated £150m 3-year term loan facility and a £60m 3-year multicurrency revolving credit facility.
CEO Adrian Whitfield said the acquisition was expected to be accretive to earnings from the first year of ownership and significantly accretive thereafter.
Shares were up 26.5p at 286.5p.
Story provided by StockMarketWire.com
13/12/2010