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Sale Closes for Evonik Methacrylates Business

Tuesday, August 6, 2019

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Specialty chemicals company Evonik (Essen, Germany) recently closed the sale of its Methacrylates business to Boston-based private equity firm Advent International.

The official closing of the business transfer took place on July 31.

The Deal

Evonik and Advent signed a purchasing agreement in March for a reported 3 billion euros ($3.39 billion), which, according to Evonik, is 8.5 times the business’ EBITDA.

Evonik

Specialty chemicals company Evonik (Essen, Germany) recently closed the sale of its Methacrylates business to Boston-based private equity firm Advent International.

The Methacrylates business has 15 production sites and 3,900 employees worldwide. From 2016-18, the business generated an average annual EBITDA of about 350 million euros and sales of about 1.8 billion euros per year. For 2019, Evonik expects sales and EBITDA at a similar level.

The transaction included the Methacrylates, Acrylic Products and CyPlus business lines, and some of the methacrylate resins activities.

Evonik put these operations on the market as part of its strategy of sharpening its focus on specialty chemicals.

The Transaction

During the closing of the transition, Evonik was determined to have 260 million euros in one-time tax obligations, which resulted from the carve-out of the Methacrylates business and payable in 2019.

“The sale is a further step in aligning our portfolio towards specialty chemicals and becoming less dependent on economic cycles,” says Christian Kullmann, chairman of the Evonik Executive Board. “As the first half of 2019 has shown, our portfolio is now more robust in the face of macroeconomic trends than it was in the past.”

The closing is also expected to show a higher deprecation and associated tax reliefs of up to 20 million euros per year in free cash flow over the next 15 years.

According to Evonik, proceeds from the transaction will be used to strengthen its balance sheet and for targeted expansion of its specialty chemicals portfolio.

   

Tagged categories: Acquisitions; Asia Pacific; Business matters; Business operations; EMEA (Europe, Middle East and Africa); Evonik; Good Technical Practice; Latin America; Methyl methacrylate; North America; PaintSquare App - Commercial; Specialty functions; Z-Continents

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