Sintema sells Czech acrylic assets to fully focus on specialty chemicals sector

Overview of Assets to Sale; Supply Cooperation to Remain

The subject of this transaction is Synthomer's acrylic monomers production base located in Sokolov, Czech Republic. The site currently employs 300 people and primarily focuses on the external sales of acrylic acid and associated monomers, with customers covering third-party chemical manufacturers across Europe.

In addition to external supply, the base has long supplied acrylic monomers to other Synthomer divisions, while also undertaking toll manufacturing orders to the group's acrylic emulsions. The company clarified that upon completion of asset transfer, internal supply and cooperation relationships will not be interrupted, and the upstream and downstream production support will maintain the original model.

Weak Business Positioning; Occupies Significant Capital Expenditure

Synthomer explained the core reason to divesting this asset. The acrylic monomers sector is subject to severe cyclical fluctuations, and this sector is the business with the highest pressure to capital investment within the group, with an annual capital expenditure reaching 5 million euros.

The group initiated an overall strategic review in October 2022, classifying this upstream basic chemical business as a non-core asset. This sector is also the group's only remaining upstream basic chemical asset. Upon completion of the sale, the group's asset portfolio will thoroughly eliminate high-cycle and high-capital-consumption sectors, optimizing cash flow and overall profitability performance, and accelerating the transformation towards specialization in specialty chemicals.

Operating Performance Gradually Recovering; Previously in a State of Continuous Loss

Financial report data shows that in fiscal year 2025 (ending December 31, 2025), the external sales revenue of this acrylic business was 68 million euros, with an adjusted EBITDA loss of 10 million euros. The operating situation showed significant improvement in 2026, achieving break-even in the first four months of this year, a marked turnaround compared to the loss of 3 million euros in the same period of 2025.

The company stated that the performance recovery is mainly attributable to the immediate upturn in chemical market conditions driven by geopolitical conflicts in the Middle East, combined with the efficiently implementation of internal cost manage measures.

Transaction Awaiting Approval; Completion Expected by End of Q3 This Year

This asset sale transaction still needs to go through standard closing approval processes such as antitrust and foreign investment reviews. According to the company's expectations, the completion of all procedures and the formal transfer of assets are scheduled to the end of the third quarter of 2026.