Versum Materials has been selected as the new company name for the Materials Technologies business of Air Products. This follows Air Products’ announcement in September that it planned to offer a tax-free spin-off of this business to U.S. shareholders on or before September 2016.
“Versum” is derived from the Latin word for “toward,” and Air Products believes that this conveys the new company’s ability to continuously move toward materials, which is core to its business, and provide cutting-edge solutions and innovation. Air Products said that the name also communicates the company’s critical role in helping customers advance their products and businesses by providing market-leading technology, innovation and valuable, reliable service.
“This is an exciting time as these Materials Technologies market-leading businesses move closer to becoming a separate publicly-owned and traded company with a distinct identity, brand, and purpose. Once complete, this separation will provide our new shareholders with ownership in two leading and focused companies while offering the opportunity to value our Industrial Gases and Materials Technologies businesses independently,” said Seifi Ghasemi, chairman, president and chief executive officer (CEO) at Air Products. Upon completion of the separation, Ghasemi will continue his role with Air Products and also become the non-executive chairman of Versum Materials.
As previously announced, Guillermo Novo, currently the executive vice president of Materials Technologies, will become Versum Materials’ CEO at the completion of the spin-off. “We look forward to the opportunity to operate as an independent, specialty materials company under the name of Versum Materials. We will take some of the culture of our heritage with Air Products and build on it in our own core marketplace. As we move forward, we aim to deliver profitable growth to Versum Materials’ shareholders by innovating for our customers, maximizing our profitability and driving to realize our strong growth prospects, while continuing to rapidly respond to changing market dynamics,” said Novo.
Air Products’ Materials Technologies business is global, delivering specialty solutions focused within niche markets, holding positions in most of its end-markets and focused on innovation-driven solutions. For fiscal year 2015, Air Products Materials Technologies had sales of approximately $2.1 billion and EBITDA margins in excess of 27%, the company noted.
The business employs approximately 3,300 employees and operates in more than 12 countries across the globe. Its Electronic Materials Division provides tailored solutions and materials to customers in the semiconductor industry, while the Performance Materials Division provides epoxy additives, polyurethane additives and specialty additives to the construction, composites, adhesives, coatings and other industries.