Evonik Industries has completed the previously announced $3.8-billion acquisition of Air Products’ performance materials division, a producer of specialty additives, and the deal is scheduled to close today.
All relevant antitrust authorities have approved the transaction and the integration of the acquired business is underway, Evonik says. The transaction’s financing was completed in September, of which €1.6 billion is from Evonik’s own funds and the rest by bonds with a nominal value of €1.9 billion, Evonik adds. The deal was announced in May 2016.
The transaction is partly structured as an asset deal, so it will lead to tax benefits as a consequence of write-offs that are typical for this type of transaction, Evonik says. These benefits amount to a net present value of more than $500 million that can be used on a pro-rated basis in 2017.
The annualized cost-synergy effects from the deal of $80 million are confirmed and should be fully realized by 2020, Evonik says. The company expects to leverage synergies of €10-20 million in 2017. The acquisition is expected to increase Evonik’s adjusted earnings per share in 2017.
“The successful completion of the acquisition paves the way for swiftly merging the activities of Evonik and the acquired units of the Air Products performance materials business,” says Klaus Engel, chairman of Evonik.
By Francinia Protti-Alvarez
During a European Industry Summit held on the site of BASF in Antwerp, leaders from basic industry sectors, representing 7.8 million workers in Europe, joined forces with European trade unions and European leaders to address pressing concerns regarding Europe’s industrial landscape.
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In a move to improve the supply of renewable hydrogen and thus reduce dependence on natural gas and contribute to achieving the objectives of the European Green Deal and the REPowerEU plan, the EU Commission has approved a third Important project of common European interest (IPCEI) to support hydrogen infrastructure.