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Arkema has successfully completed the acquisition of Dow’s flexible packaging laminating adhesives business, significantly enhancing its product portfolio in the flexible packaging sector. With annual sales of approximately $250 million (€238 million), Dow’s business offers a diverse range of high-quality solutions across food, medical, and industrial applications. The acquisition involves five advanced production facilities located in Italy, the United States, and Mexico.

Through this acquisition, Arkema’s subsidiary, Bostik, will strengthen its commercial presence and technological capabilities in flexible packaging. The company aims to capitalise on new growth opportunities and expects to achieve synergies worth around $30 million (€28.5 million) in EBITDA over the next five years. The acquisition, valued at $150 million (€142.5 million), is expected to incur $50 million (€47.5 million) in implementation costs over the next three years.

Thierry Le Hénaff, Arkema’s Chairman and CEO, expressed his enthusiasm about integrating Dow’s team, stating that this acquisition positions Bostik as a key player in the flexible packaging adhesives market and opens up new opportunities for collaboration with industry customers.

For Dow, the sale supports its capital allocation strategy, including accelerating growth and enhancing shareholder value. This move follows Dow’s acquisition of Circulus, a mechanical recycler, and reflects its ongoing strategy to align its portfolio with growth and sustainability priorities. Dow will retain its core businesses in water-based laminating adhesives, acrylic adhesives, and adhesive solutions, which are central to its long-term strategy.

Karen S. Carter, President of Packaging & Specialty Plastics at Dow, highlighted that the divestiture aligns with the company’s long-term vision and strengthens its core business, enabling future growth and innovation. By focusing on its key strengths, Dow aims to deliver enhanced value to its customers and stakeholders.