4 March 2019
Ronald Ayles,
Managing Partner and Global Head of Chemicals
at Advent International
“Evonik’s methacrylates business
is an impressive technology platform
with a well-established market position
and very attractive growth opportunities.
We look forward to working in close cooperation
with the highly qualified employees and management team
to establish the business
as an independent global market leader.”
The transaction comprises
Evonik’s Methacrylates, Acrylic Products, CyPlus,
and methacrylate resins business lines.
The division’s products include strong brands such as
PLEXIGLAS® and are used in a variety of end markets,
including paints and coatings, construction,
automotive and healthcare.
With around 3,900 employees across 18 production sites
in Germany, North America and Asia,
the methacrylates business generated
sales of about €2 billion in 2018.
DETAILS
VIEW FULL DIVESTMENT PRESENTATION
Evonik has today signed an agreement to sell
its Methacrylates business to
Advent International for €3 billion.
The selling price (enterprise value)
is 8.5 times the business’ EBITDA.
- Consistent strategy execution
to focus on specialty chemicals - Attractive selling price of €3 billion
is 8.5 times the business’ EBITDA - Excellent development opportunities
for Methacrylate business
Essen, Germany. Evonik has today signed an agreement
to sell its Methacrylates business to
Advent International for €3 billion.
The selling price (enterprise value)
is 8.5 times the business’ EBITDA.
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 Methacrylates business has
18 production sites and 3,900 employees worldwide.
From 2016 to 2018, the business generated
an average annual EBITDA of about €350 million and
sales of about €1.8 billion per year.
For 2019 Evonik expects
sales and EBITDA at a similar level.
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.
The net purchase price (equity value) can be calculated
after deductions, made up primarily of pension obligations
of around €500 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 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.
These businesses generate
an attractive margin and an above-average cash flow.
Also in 2019 and even without the contribution
from the Methacrylates business, Evonik will be able
to cover the dividend payment out of its strong free cash flow.
READ MORE FROM ADVENT INTERNATIONAL
Contact Evonik
Head of External Communications
Phone: +49 201 177-3348
Media contacts
Advent International
Hering Schuppener Consulting
Jobst Honig
T +49 30 59 00 46 9-13
M +49 171 86 29 967
E jhonig@heringschuppener.com
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