Sector News

Germany’s Evonik expects methacrylate Advent €3bn sale completed by 31 July

July 17, 2019
Chemical Value Chain

Germany’s Evonik expects the sale of its methacrylate business to US firm Advent International to be completed by 31 July, a source from the company confirmed on Tuesday.

This follows approvals from the European Commission earlier in the month for the €3bn sale to the private equity fund.

The transaction includes the Methacrylates, Acrylic Products and CyPlus business lines, as well as some methacrylate resins activities.

The methacrylates business has 18 production sites and 3,900 employees worldwide.

It generated an average annual earnings before interest, taxes, depreciation and amortisation (EBITDA) of about €350m and sales of about €1.8bn/year in 2016-2018 and similar levels are expected for 2019.

There had been some concerns in the wider market over the sale, with MMA prices on a downward cycle for the last 14 months.

Evonik has contacted its customers to confirm the existing contracts will be assigned to the new company.

Buyers said they are expecting “business as usual” after the sale is completed.

According to some, the deal’s completion was good news after the uncertainty caused by a transaction which, for its magnitude, could affect the market’s dynamics.

The new company has not been named yet.

“We are not expecting any major changes to the current dynamics, they will fulfil current agreements,” said one trader.

“The sale is going through, which puts my mind at ease,” said one methyl methacrylate (MMA) buyer.

Source: ICIS News

Join the discussion!

Your email address will not be published. Required fields are marked *

Related News

January 23, 2021

Bayer AG appoints Sarena Lin as Chief Transformation and Talent Officer

Chemical Value Chain

Lin will become the company’s Chief Transformation and Talent Officer. She will be responsible for Human Resources, Strategy and Business Consulting and drive the accelerated transformation of Bayer.

January 23, 2021

Johnson Matthey’s battery plant in Poland to be powered by renewable electricity 

Chemical Value Chain

Johnson Matthey plc (JM; London) has confirmed that its battery cathode materials plant in Konin, Poland, will be powered solely by electricity from renewable sources from day one of production.

January 23, 2021

Oxford given £100m for antibiotic resistance research

Chemical Value Chain

Britain’s Oxford University has received a donation of £100 million (112 million euros, $136 million) to research growing resistance to antibiotics, the university announced on Tuesday. The sum, from British chemicals multinational Ineos, is one of the largest donations given to Oxford University in its long history.

Send this to a friend