Yule Catto launches £225m rights issue to buy Germany’s PolymerLatex for £130m

 
City A.M. Reporter
CHEMICALS maker Yule Catto yesterday said it had agreed to buy Germany-based latex maker PolymerLatex for €157m (£131m) to boost its market share, product offering and pipeline.

Yule Catto, which will also assume €286m in PolymerLatex debt, plans to fund the acquisition from a combination of a four-for-three rights issue that would raise about €225m and new credit facilities.

The new credit facilities comprise a euro denominated three-year term loan facility of £150m and a multi-currency revolving credit facility of £60m.

The deal is expected to add to Yule Catto’s earnings from the first year of ownership.

PolymerLatex’s underlying sales were €386.7m and underlying earnings €54.6m for the year ending December 2009.

Yule Catto’s shares closed 30p up at 290p yesterday.