Synthomer's offer of $10.15 per share represents a premium of 58% over Omnova’s closing share price of $6.42 on 2 July. In a related release announcing the deal, Omnova CEO Anne Noonan said the offer price represents a 52% premium over the company’s three-month weighted average share price of $6.67. Omnova shares soared 55.1% in premarket trading on 3 July.
The transaction has been unanimously approved by the boards of both Omnova and Synthomer. The sale is subject to closing conditions, including receipt of regulatory approvals, but ‘is not contingent on obtaining financing and is expected to close in late 2019 or early 2020’, according to the release.
Ohio-based Omnova reported fiscal second-quarter earnings and sales that missed market expectations. Sales totaled $205.7 million (£165.0m), marginally down from the previous year’s $206.3 million. Earnings fell about 33% to $5.6 million.
Commenting on the second quarter results, Noonan said: "As anticipated, we continued to face challenging economic conditions and volatile markets during the quarter."