Evonik to Acquire Porocel for US$210 Million
Evonik has announced that it is acquiring the Porocel Group for US$210 million to accelerate the growth of its catalysts business. “This acquisition is the next logical step in the strategic development of our portfolio. Our focus is on stable and high-margin specialty chemicals,” said Christian Kullmann, chairman of the executive board. “We are systematically expanding the share of our specialty businesses — and that at an attractive valuation.”
The purchase price (enterprise value) is 9.1 times adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in 2019. The transaction is expected to close by the end of 2020 and is subject to approval by the relevant authorities. Additionally, Evonik reportedly expects to increase sales of the combined catalyst business to significantly more than €500 million by the end of 2025 without the need for investment in new capacities.
“Sustainability and especially circular economy play a decisive role for us when it comes to acquisitions and the orientation of our portfolio,” said Claus Rettig, head of the Smart Materials division. “With the acquisition of Porocel, we are meeting increasing demand that is coming from a trend towards sulfur-free fuels as well as reducing CO2 emissions and saving resources. The catalyst rejuvenation process results in significantly less CO2 emissions than the manufacture of fresh catalysts, while yielding comparable efficiency and at a much lower cost.”