Evonik to Sell Methacrylates Business to Advent International

Evonik has agreed to sell its Methacrylates business to Advent International for €3 billion. The selling price is 8.5 times the business’ EBITDA, the company stated. 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. Evonik stated that it expects sales and EBITDA at a similar level for 2019.

The transaction comprises the Methacrylates, Acrylic Products and CyPlus business lines, and some of the methacrylate resins activities. According to Evonik, the company put these operations on the market as part of its systematic strategy of sharpening its focus on specialty chemicals, which are less cyclical.

Evonik will reportedly use the sale proceeds to strengthen its balance sheet and, above all, for targeted growth projects. That includes funding the purchase price of the U.S. 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, the company stated.