US OMNOVA eyes bolt-ons, sees specialties as priority
Stefan Baumgarten
22-Sep-2016
CEO says the Ohio-based company has a “very active pipeline”
of acquisition options. Specialty chemicals, like the
adhesives and top coats used on sports surfaces, account for
almost 37% of Q3 sales. (Image
Source/REX/Shutterstock)
HOUSTON (ICIS)–OMNOVA Solutions is looking for bolt-on
acquisitions, the CEO of the US-based producer of performance
chemicals and engineered surfaces said on Thursday.
“We have a very active pipeline of acquisition opportunities,
that continues to be an ongoing effort,” Kevin McMullen told
analysts during OMNOVA’s fiscal third-quarter earnings call.
He did not disclose specific targets, but he stressed that
growth in specialty chemicals is a “top strategic
priority” for OMNOVA.
Specialty chemicals – with sales of $72.0m in the third
quarter, or almost 37% of the company’s
total third-quarter sales of $195.6m – was the only OMNOVA business that
achieved a year-on-year sales increase in the quarter ended
31 August.
Specialty chemicals volumes rose more than 6% year on
year, led construction materials, oil-and-gas chemicals and
elastomeric modifiers. Specialty chemicals are part of
OMNOVA’s performance chemicals segment.
Chief financial officer Paul DeSantis added that during the
quarter OMNOA refinanced outstanding long-term debt, giving
it more flexibility to “pursue strategic priorities”. The
refinancing also lowers costs and extends maturities through
2023, he added.
INSET IMAGE: Photo illustration (Stock Connection/REX/Shutterstock)
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