Evonik to pay $3.8bn for Air Products' specialty and coating additives business
Germany's Evonik Industries has agreed to acquire the specialty and coating additives operations of US industrial gas producer Air Products and Chemicals for $3.8bn.
Scheduled to be completed by the end of the year, the deal will strengthen Evonik's position on the high-margin specialty and coating additives market.
Following completion, the combined specialty and coating additives business will have a turnover of around €3.5bn and an attractive EBITDA margin of more than 20%.
Evonik Industries CEO Klaus Engel said: "Evonik is already one of the leading producers of specialty and coating additives. Air Products' specialty and coating additives business perfectly complements this fast-growing segment.
"With this acquisition, we are expanding our portfolio with precisely the right markets, products and innovations and continuing to invest in our growth and profitability."
Evonik and the newly acquired business will serve three growing core markets, including coating and adhesive additives, high-value PU foam additives, and specialty surfactants for industrial and institutional cleaning.
It is reported that demand for these products is rising strongly, and the market for these additives is expected to grow far more quickly than overall demand for chemical products.
In addition to securing leading position in North America for Evonik, the acquisition is expected to generate $80m in synergies per annum.
Similar to Evonik, the specialty and coating additives business of Air Products follows a solution-oriented business model driven by intensive interaction with customers in research and development and technical service.
The proposed acquisition remains subject to formal approvals from the relevant antitrust authorities.