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Acquisition caps off record year for Synthomer

The lattice, latex and polymer specialist's investment drive lived up to the lofty expectations set in January
Acquisition caps off record year for Synthomer

Synthomer (SYNT) made clear in January that its 2016 full-year results would smash previous expectations, and underlying pre-tax profits did just that, up more than a quarter to £122m. But the supplier of latices and speciality polymers still managed to deliver some positive surprises, including the announcement of another potentially earnings-enhancing acquisition.

IC TIP: Hold at 446.5p

Part of Synthomer's growth strategy involves buying businesses capable of enhancing its position in the speciality chemicals market. The €78m (£67m) acquisition of performance additives specialist Perstorp Oxo Belgium - actually based in Sweden - promises to do just that, at a cost that management estimates will fall to seven times adjusted cash profits once the full benefits of its integration are realised.

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