Elkem ASA has entered into an agreement to acquire all of the shares in Polysil, a leading Chinese silicone elastomer & resins material manufacturer with strong positions in baby care and food grade silicones, as well as silicone products for the electronics and medical markets. Polysil and Elkem’s complementary product and market positions provide a solid platform for further specialisation and growth in China and globally.
Polysil is a privately owned company with more than 400 employees located in Zhongshan in Guangdong, China. The company has leading technology positions in production and development of Heat Cured Rubber (HCR), Liquid Silicone Rubber (LSR) and specialty resin and Pressure Sensitive Adhesives (PSA). Polysil has two production facilities and a research and development centre with more than 50 scientists.
In 2019, Polysil is estimated to generate a total operating revenue of RMB 612 million with an EBITDA of RMB 110 million.
The companies have agreed an enterprise value for Polysil of up to RMB 941 million, including potential earn-out dependent on pre-agreed parameters.
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