Synthomer (LSE:SYNT) has reached an agreement to sell Synthomer a.s., its Acrylate Monomers operation in the Czech Republic, to German investment firm Mutares SE & Co. KGaA. The transaction marks the group’s exit from its final upstream base chemicals business and represents another step in its strategy of focusing on higher-value speciality chemicals markets.
The business being sold is a significant European producer of acrylic acid and acrylate monomers and employs approximately 300 people at its Sokolov facility. Following completion of the transaction, the operation will continue supplying acrylic raw materials and dispersions to Synthomer under the new ownership structure, helping to maintain continuity across the company’s downstream manufacturing activities.
The divested business has operated in cyclical and capital-intensive markets, requiring average annual capital expenditure of around €5 million. In 2025, it generated €68 million in external revenue while reporting an adjusted EBITDA loss of €10 million, before returning to break-even performance during the early part of 2026. The transaction does not include an upfront cash payment. Instead, consideration will be linked to future performance, with Synthomer eligible to receive up to €12 million through a shared cash generation mechanism over a three-year period.
Management expects the disposal to complete by the end of the third quarter of 2026 and believes the move will strengthen profitability, improve cash generation and further align the group with higher-margin speciality chemical markets.
The company’s outlook continues to be weighed down by a history of losses and inconsistent revenue performance, despite improvements in leverage and a recovery in cash flow during 2025. Technical indicators remain one of the stronger aspects of the investment case, with the shares trading above major moving averages and momentum signals remaining positive. However, overbought conditions suggest some risk of a short-term pullback. Valuation metrics remain under pressure due to the company’s negative price-to-earnings ratio.
More About Synthomer plc
Synthomer plc is a London-headquartered speciality chemicals manufacturer supplying high-performance polymers and ingredients to customers across a range of industrial and consumer markets. The company serves sectors including coatings, construction, adhesives, healthcare and protection products.
Employing approximately 3,800 people, Synthomer operates five innovation centres and 29 manufacturing facilities worldwide, supplying more than 6,000 customers globally. The group generated £1.7 billion of continuing revenue in 2025 and organises its operations across three divisions: Coatings & Construction Solutions, Adhesive Solutions, and Health & Protection and Performance Materials.
Its products are used in applications ranging from architectural coatings and waterproofing systems to packaging, medical gloves and industrial foams. Synthomer’s strategy focuses on expanding its presence in higher-growth and sustainability-linked markets, supported by innovation, proprietary technologies and climate objectives aligned with the Paris Agreement.
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