Germany's Evonik acquires PeroxyChem for $625m

Source: ICIS News

2018/11/08

SINGAPORE (ICIS)--Evonik has signed a deal with One Equity Partners to acquire US-based PeroxyChem for $625m, the German specialty chemicals maker said on Thursday.

The transaction is scheduled to be completed by mid-2019, subject to approval by the relevant authorities, the company said in a statement.

PeroxyChem is a manufacturer of hydrogen peroxide (H2O2) and peracetic acid (PAA). They are both oxidants with multiple application fields, whether as a bleaching agent in the pulp industry, as a disinfectant for food processing or for wastewater treatment.

"The H2O2 and PAA markets are characterised by versatile applications and above-average growth rates - especially for specialty applications with average annual market growth of around 6%," Evonik said.

PeroxyChem expects revenues of about $300m and an adjusted earnings before interest, depreciation and amortisation (EBITDA) of around $60m in 2018, which corresponds to an EBITDA margin of around 20%.

"Evonik expects synergies across the combined global business of $20m due to the complementary fit in operations, logistics, expansion of the product portfolio and launch of new technologies. Synergies should be fully realised by 2022," the company said.

PeroxyChem employs around 600 people worldwide with eight production sites located mainly in North America but also Germany, Spain and Thailand.