Adhesives accelerate the integration of specialty products into the company's prey

Since 2005, at least 12 acquisitions have taken place in the global adhesives and sealants industry with a market value of US$23 billion. As some SMEs are unable to cope with rising costs or are unable to meet the changing needs of users in time, more will emerge in the coming years. Acquisition activity. The head of the consulting firm Chemark Consulting Group pointed out that specialty adhesives and sealants will become hot spots for acquisition.

In this round of integration climax, the companies that are most likely to become acquisition targets or shut down are companies that are similar to large companies in terms of product lines, services, or technologies, or that cannot introduce new products in time with changes in market demand. At the same time, rising raw material costs and reduced profits have forced big companies to seek mergers, acquisitions, or other forms of cooperation to weather the storm.

Henkel's civil adhesives business executive said that the degree of integration between the adhesives and sealants industry has not yet reached the level of other industries. One of the reasons for this is that there are many special markets in this industry. Consumers want less supply. Dealing with business, so companies that can provide special products take advantage.

Some manufacturers have made a series of acquisitions to expand their product and technology portfolio. Earlier this year, Henkel acquired an adhesive company for $575 million, aiming to consolidate its leading position in the global adhesives and sealants market. The company’s 2004 sales of 391 million US dollars, specializing in the production and management of industrial, construction and DIY adhesives. It is expected that the merger will be completed next year. In addition, this year Henkel consolidated its position in the construction adhesives market through two other acquisitions and expanded its market coverage.

Other significant acquisitions this year included RPM's acquisition of a binder company for approximately US$137 million. The acquired company serves the European market and its products include high-performance sealants and installation systems for the construction industry. Last year, sales were approximately 1.6. Billion euros (about 192 million U.S. dollars). It is expected that all mergers will be completed by 2006.

Source of information: pack.cn