Resonac Corp. (Tokyo) announced that it has entered into definitive agreements with the Sika Group (Baar, Switzerland) to transfer agreed-upon portions (the “Target Businesses”) of the adhesives businesses operated by Resonac and its consolidated subsidiaries in Japan, China and Taiwan.
The businesses included in the Transaction comprise the adhesives business (excluding the tape business) and the hot-melt business at Resonac’s Goi Plant (Noda) in Japan; all operations at the Dapumei Plant of Resonac Li-Bond Materials (Taiwan) (RLBT), as well as the polyurethane adhesive and epoxy adhesive product businesses at RLBT’s Minxiong Plant in Taiwan; and all operations of Resonac Li-Bond Materials (Wuxi) (RLBWX) in China. The tape business and low-melting glass business in Japan, and certain hot-melt adhesive and solvent-based adhesive product businesses in Taiwan, are excluded from the Transaction.
The Target Businesses have established operating platforms centered on the Goi Plant, RLBT and RLBWX. Leveraging formulation and reaction-control technologies developed over many years, they provide high-value-added products to a broad range of markets, including the automotive sector. In particular, their adhesives for automotive interiors and automotive back doors are highly regarded by customers in Japan and overseas.
The Sika Group is one of the world’s leading companies in adhesives and sealants, with a global sales network, manufacturing footprint and research and development capabilities. The Target Businesses’ technologies and customer base are highly complementary to those of Sika, and the combination is expected to create significant added value. The impact of the Transaction on Resonac’s consolidated financial results is expected to be immaterial.
Resonac will transfer the Target Business to a newly established wholly owned subsidiary through an absorption-type company split, and then transfer all shares of that subsidiary to the Sika Group. RLBT will transfer the Target Businesses to the Sika Group through a business transfer. The Resonac Group will transfer all of its equity interests in RLBWX to the Sika Group.
The principal products include solvent-based, solvent-free and hot-melt adhesives. Subject to the satisfaction of the conditions precedent in the respective agreements, completion is scheduled to occur during 2027.