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)