Synthomer (LSE:SYNT), the London-listed speciality polymers group, has agreed to sell its Acrylate Monomers business to Mutares & Co. KGaA, with the transaction structured entirely as a contingent cash-sharing arrangement rather than upfront consideration.
The divested unit, which operates from a manufacturing site in Sokolov, Czech Republic, with around 300 employees, generated external sales of €68m in 2025 but recorded a standalone adjusted EBITDA loss of €10m for the year.
Trading improved to break-even in the first four months of 2026, compared with a €3m loss in the same period a year earlier, driven by cost reductions and more favourable market conditions since the start of the Iran conflict.
The deal carries no cash at closing, beyond approximately €5m in working capital passed to the buyer. Synthomer will receive up to €12m over three years through a cash generation sharing arrangement, contingent on the business's performance under Mutares's ownership.
Synthomer flagged Acrylate Monomers as non-core during its October 2022 strategic review, identifying it as the group's only remaining upstream asset and a capital-intensive one, averaging approximately €5m in annual capital expenditure.
"This transaction is a good outcome for all stakeholders," said CEO Michael Willome, adding that Mutares's turnaround track record leaves it "well positioned to support Acrylate Monomers in its next phase."
Completion is expected at the end of the third quarter of 2026, subject to customary closing conditions.
