Evonik agrees to sell its methacrylates business to Advent International for €3 billion. The selling price (enterprise value) is 8.5 times the business’ EBITDA, according to the company. The transaction is subject to approval by the authorities in several countries and is expected to close in the third quarter of this year.
The methacrylates business reportedly has 18 production sites and 3,900 employees worldwide. From 2016 to 2018, the business generated an average annual EBITDA of about €350 million and sales of about €1.8 billion per year, says Evonik. For 2019 Evonik expects sales and EBITDA at a similar level. The transaction comprises the methacrylates, acrylic products and CyPlus business lines, and some of the methacrylate resins activities.
The net purchase price (equity value) can be calculated after deductions, made up primarily of pension obligations of around €500 million. Evonik will use the sale proceeds to strengthen its balance sheet and for targeted growth projects including funding the purchase price of PeroxyChem, which Evonik plans to close this year, according to the company. Some funds will be used to strengthen the present specialty chemicals portfolio, for example, by building a new polyamide 12 plant in Marl, Germany.
For more information, visit: www.evonik.com