6 May 2016
ABOUT Performance Materials Division (PMD)
PMD generated
$1.04 billion in revenue and
$241 million of Adjusted EBITDA
over the last twelve months ending March 31, 2016*.
PMD had $244 million of Adjusted EBITDA
in fiscal 2015*.
PMD consists of
* epoxy curing agents (40 percent of revenues),
* polyurethane additives (32 percent) and
* specialty additives businesses (28 percent).
PMD has approximately 1,100 employees and
includes major production facilities in
the U.S., Germany, the United Kingdom,
China and Japan.
PMD products provide distinct,
performance-enhancing benefits in use across
the construction, marine, automotive,
industrial cleaning, and other markets.
DETAILS
is acquiring
the Specialty & Coating Additives business
(Performance Materials Division) of the US company
Air Products and Chemicals, Inc.
for 3.8 billion US dollars (approx. €3.5 billion),
strengthening its leading position on
the high-margin specialty & coating additives market.
The transaction is intended to be completed
by the end of the year.
It is expected that the acquisition
will be EPS accretive for Evonik
in the 2017 business year.
Klaus Engel,
CEO of Evonik Industries AG
"Evonik is already one of the leading
producers of specialty & coating additives.
Air Products’ Specialty & Coating Additives business
perfectly complements this fast-growing segment.
With this acquisition we are expanding our portfolio
with precisely the right markets, products and
innovations and continuing
to invest in our growth and profitability."
Rapid integration
With its own strategic reorganization and creation
of three independent operational segments in 2015,
Evonik established the right conditions
for integrating major acquisitions. As such,
Air Products’ Specialty & Coating Additives business
can be rapidly integrated into the growth segments
Nutrition & Care and Resource Efficiency.
The combined specialty & coating additives business
has a turnover of around €3.5 billion and
an attractive EBITDA margin of more than 20%.
At the same time, Evonik is further
strengthening its leading position in rapidly growing,
highly profitable markets with strong differentiation
from competitors and
low dependence on commodity prices.
Highly complementary products and markets
With their products and their strong positions
in the key global markets,
Evonik and the newly acquired business
are highly complementary.
Their specialty & coating additives
add critical and highly valuable characteristics
to their customers’ products.
The two businesses serve
three particularly attractive, rapidly growing core markets:
1. coating and adhesive additives,
2. high-value PU foam additives, and
3. specialty surfactants for industrial
and institutional cleaning.
They target the same end customers, but
with different and complementary products.
For instance, Evonik is a leader in PU foam stabilizers
while the Specialty & Coating Additives business
of Air Products is well positioned in PU foam catalysts.
Demand for these products is rising strongly,
and the market for these additives
will grow far more quickly
than overall demand for chemical products.
Geographically, Evonik and the acquired division
also complement each other.
While the focus of the Air Products’ business
is on North America and Asia,
Evonik is particularly strong in Europe.
With the current acquisition, Evonik is crucially boosting
its standing in the North American market, allowing it
to serve the increasingly global activities
of its customers even more effectively.
At the same time, by growing in North America and Asia,
Evonik is reducing its dependence on
the European market and therefore better
protecting its own business
against economic fluctuations in individual regions.
Strengthening innovation
Like Evonik, Air Products’ Specialty & Coating Additives
business follows
a solution-oriented business model
driven by intensive interaction with customers
in research and development
and outstanding technical service.
The acquisition will allow Evonik
to significantly strengthen its innovation leadership.
Contacts Evonik
- Matthias Ruch
- Head of Corporate Press
- +49 201 177-3348
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