Germany: 3.4 Billion Dollar Deal Evonik Sells Methacrylates Business to Advent International
Evonik has signed an agreement to sell its Methacrylates business to Advent International for approx. $ 3.4 billion. The selling price (enterprise value) is 8.5 times the business’ Ebitda.
Essen/Germany — The Methacrylates business has 18 production sites and 3,900 employees worldwide. From 2016 to 2018, the business generated an average annual Ebitda of about $ 397 million and sales of about $ 2 billion per year. For 2019 the company expects sales and Ebitda at a similar level. The transaction is subject to approval by the authorities in several countries and is expected to close in the third quarter of this year.
The transaction comprises the Methacrylates, Acrylic Products and Cyplus business lines, and some of the methacrylate resins activities. The group 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.
The net purchase price (equity value) can be calculated after deductions, made up primarily of pension obligations of around $ 567 million. 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 Peroxy Chem, which the company 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.