Divestment of Acrylate Monomers

(LSE/AIM:SYNT) Synthomer plc announced an agreement to divest Synthomer a.s., the operating company for its Acrylate Monomers business based in the Czech Republic, to Mutares SE & Co. KGaA. Acrylate Monomers generated external sales of €68m and recorded a standalone adjusted EBITDA loss of €10m in the year ended 31 December 2025. The divested business has required c.€5m on average in capital expenditure per annum and employs c.300 employees at its manufacturing site in Sokolov, Czech Republic. The transaction consideration comprises a cash generation sharing arrangement of up to €12m over three years, with no initial consideration at closing, and is expected to complete at the end of Q3 2026. At closing, the operating company is expected to include c.€5m in cash to support the normalised working capital requirements of the business. Trading improved to break-even in the first four months of 2026, compared with a loss of €3m in the comparable period in 2025. The company projects that the transaction will improve profitability and cash generation, and further transition the simplified portfolio towards a speciality focus.

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