Synthomer to buy Omnova in $824 mln deal
Adds details, background
July 3 (Reuters) - Polymer maker Synthomer Plc SYNTS.L said on Wednesday it has agreed to buy Omnova Solutions Inc OMN.N for an enterprise value of $824 million in a bid to strengthen its global position.
Synthomer is offering Omnova $10.15 for each share, a premium of 58% to Omnova's closing price on Tuesday.
Shares of Synthomer fell 5% to 352.4 pence, making them the top loser on the FTSE 250 index.
Acquiring Omnova will help Synthomer bolster its footprint in Europe and Asia and help penetrate into China, Synthomer said in a statement.
The deal will be financed through a rights issue of up to $257 million and is likely to be completed by late 2019 or early 2020.
Upon completion, Synthomer expects the deal to add to its earnings in the first financial year and expects an annual pre-tax cost savings of $29.6 million by the end of the third year.
Separately, Omnova said its second-quarter profit fell over 33% to $5.6 million, hurt by volatile markets and challenging economic conditions, it said in a statement.
(Reporting by Ismail Shakil and Tanvi Mehta in Bengaluru; Editing by Arun Koyyur)