Evonik purchases Huber’s silica business for $630m
German industrial corporation Evonik Industries has acquired US-based family-owned business JM Huber’s silica business for $630m.
With the acquisition, Evonik Industries will be able to expand its silica business across North America and Asia. It expects to generate synergies of $20m, particularly in the segments of production, logistics and procurement, and through harmonisation of the product portfolio.
The company expects to have all synergy measures implemented by 2021.
Evonik Industries Executive Board chairman Klaus Engel said: “Huber Silica will significantly strengthen our growth segment Resource Efficiency.
“In addition, it offers the opportunity to strategically develop Evonik’s portfolio.”
Silica is small particles based on silicon dioxide. The surface structure of Silica determines the characteristics of the final product.
The silica market, which enjoys a growth of 4% to 6% every year, is characterised by a wide range of applications.
JM Huber deals particularly with applications in the consumer goods industry, such as the dental sector.
JM Huber president and chief executive officer Mike Marberry said: “The silica business has been part of Huber since the 1950’s and paved the way for our company’s global expansion into engineered materials.
“While it is difficult to part with a longstanding business, we see Evonik as an excellent strategic fit for both our silica customers and employees.”
Slated to be completed in the second half of next year, the acquisition transaction depends on the approval of the concerned authorities.
Financing for the transaction has been arranged through the company’s own funds and committed credit facilities.