LISTED speciality chemicals company Synthomer has agreed an $824m (£654m) deal to acquire counterpart Omnova Solutions reports Insider Media.

Omnova develops, manufactures and markets polymers, dispersions, elastomers and other speciality chemicals.

The acquisition values Omnova’s share capital at $473m (£375m), with implied enterprise value of $824m (£654m).

Synthomer said the deal is set to create a global speciality chemicals company with greater scale and provide a platform from which to invest in future growth.

It plans to fund the transaction the gross proceeds of a rights issue of up to £204m and drawings under new debt facilities.

Calum MacLean, chief executive of Synthomer, said: “This transaction is an important step in the continued execution of Synthomer’s strategy with an acquisition that is both strategically and financially compelling.

“The acquisition of Omnova represents an attractive opportunity to materially expand our international business into North America and expand our presence in Europe and Asia, creating a global speciality chemical company.

“The acquisition provides an attractive financial profile with significant expected synergy benefits.

“Synthomer has been disciplined waiting for the right opportunity to deliver value through our inorganic growth strategy and this acquisition will provide an additional platform for Synthomer to continue to grow into the medium term.”

Synthomer has UK production facilities in Harlow and Stallingborough.