UK: Business Deal Perstorp Sells Caprolactone Business to Ingevity for 669 Million Dollars
Under the deal, Ingevity will take over Perstorp UK which comprises of the firm’s entire caprolactone business. With this sale, the Perstorp Group is now aiming to develop its Polyol, Oxo and Feed businesses.
Malmö/Sweden – Perstorp, a global leader in specialty chemicals, recently announced that it has agreed to sell Capa, its caprolactone business, including the production site in Warrington, to Ingevity for approximately 669 million dollars. The business has annual revenues of approximately 170 million dollars.
Under the company’s leadership during the last 10 years, Capa’s operating margins have increased by almost 50 % by investing in production and new product lines, which in turn have increased both the customer base and the geographic reach. This has made Capa a highly attractive asset, gaining interest among several potential buyers of which Ingevity now will be the new owner to continue to develop the long-term value of the business. Ingevity will acquire Perstorp UK including Perstorp’s entire caprolactone business.
The sale of Capa will unlock significant value and is in line with Perstorp’s track record of successful divestments such as its most recent bio fuels business and in 2017, the Belgian site in Gent.
It will furthermore enable the Perstorp Group to focus its business opportunities and future growth prospects on its Polyol, Oxo and Feed businesses, maximising opportunities such as:
- further building leadership in the polyol business
- expand the markets for phthalate free plasticiser Pevalen
- expand the markets for products within the animal nutrition area
- establishing its pro-environment solutions as the first choice (certified products based on renewable raw materials)
The transaction is subject to certain regulatory approvals and other customary closing conditions, and Perstorp expects to close the transaction in the first quarter of 2019.