Omnova acquires chemicals manufacturer Eliokem

Omnova Solutions has completed its acquisition of fellow specialty chemicals manufacturer Eliokem International from AXA Private Equity.

The company paid €227.5m (£190.3m) for Eliokem before subtracting Eliokem’s net debt and subject to working capital and capital expenditure adjustments.

Omnova expects the transaction to be neutral to slightly dilutive to earnings in 2011 but accretive in 2012.

In connection with the acquisition, the company issued $250m in senior notes due 2018, replaced its existing $150m term loan with a new $200m term loan, and amended and extended its existing revolving credit facility.