Evonik Industries AG will sell its methacrylates business to private equity group Advent International for 3 billion euros ($3.4 billion), in a deal covering its methacrylates, acrylic products and CyPlus business lines, and some of the methacrylate resins activities.
The businesses cover 18 production sites and 3,900 employees worldwide, with annual earnings before interest, taxes, depreciation and amortization (EBITDA) of about 350 million euros ($396.4 million) and yearly sales of about 1.8 billion euros ($2 billion).
The sale price represents a multiple of 8.5 times the business' EBITDA. The transaction is subject to approval by the authorities in several countries and is expected to close in the third quarter of 2019.
Essen, Germany-based Evonik said divesting its methacrylates, acrylic products and CyPlus commodity businesses fits within the company 's systematic strategy to sharpen its focus on specialty chemicals, which are less cyclical.
Advent International of Boston has had more than 30 financial investments in the chemical industry globally. Its holdings include European packaging companies Faerch Plast Group A/S, HT Troplast, resin seller BIP Group and in 2018 it purchased a stake in India PET bottle and preform maker Manjushree Technopack Ltd.
Proceeds from the sale will allow Evonik to strengthen its balance sheet and to fund the purchase of the U.S. company PeroxyChem LLC, a Philadelphia manufacturer and supplier of hydrogen peroxide, peracetic acid, persulfates and adjacent technologies. Evonik plans to complete that acquisition later this year.
In addition, some funds will be used to strengthen the present specialty chemicals portfolio, for example, by building a new nylon 12 plant in Marl, Germany.