Evonik has signed an agreement to sell its methacrylates business to Advent International for three billion euros. The transaction is subject to approval by the authorities in several countries and is expected to close in the third quarter of 2019. The methacrylates business has 18 production sites and 3,900 employees worldwide and, from 2016 to 2018, generated sales of about 1.8 billion euros per year.
The transaction comprises 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 systematic strategy of sharpening its focus on specialty chemicals, which are less cyclical. Private equity company Advent International is one of the most experienced financial investors in the chemical industry in the world, with more than 30 investments over three decades.
Evonik will use the sale proceeds to strengthen its balance sheet and, above all, for targeted growth projects. That includes funding the purchase price of the US company PeroxyChem, which Evonik plans to close this year. In addition, some funds will be used to strengthen the present specialty chemicals portfolio, for example, by building a new polyamide 12 plant in Marl, Germany.
Moreover, Evonik also released the 2018 results, which marked a growth of 4% in sales reaching 15 billion euros.
As for performance materials, sales for the year rose 6% to 3.98 billion euros, mainly because of significantly higher selling prices. The methacrylates business developed very well on continuing good demand, especially from the coatings and auto industries, as well as tight market supply. In the second half of the year low water levels in the Rhine River limited the transport of raw materials and goods and led to higher logistics costs.
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