Evonik will acquire the Porocel Group for $210 million to accelerate the growth of its catalysts business, according to the company. Based in Houston, Texas, Porocel offers a technology for rejuvenation of desulfurization catalysts, which are reportedly in increasing demand to produce low-sulfur fuel. Rejuvenation reduces carbon-dioxide emissions by more than 50% compared with the production of new desulfurization catalysts, according to Evonik. In addition, Porocel has available production capacity, enabling Evonik to speed up expansion of its existing business with fixed-bed catalysts.
Porocel generated sales of approximately $100 million and EBITDA of about $23 million in 2019, according to Evonik. The EBITDA margin at around 23% is above Evonik's target range of 18-20%. Porocel has increased its EBITDA significantly in the last three years, driven by new product development through an expansion of research and development capabilities. The company has more than 300 employees worldwide and production facilities in the U.S., Canada, Luxembourg and Singapore.
“Sustainability and especially circular economy play a decisive role for us when it comes to acquisitions and the orientation of our portfolio,” says Claus Rettig, head of the Smart Materials division. “With the acquisition of Porocel we are meeting increasing demand that is coming from a trend towards sulfur-free fuels as well as reducing CO2 emissions and saving resources. The catalyst rejuvenation process results in significantly less CO2 emissions than the manufacture of fresh catalysts, while yielding comparable efficiency and at a much lower cost.”
The acquisition gives Evonik access to major customers in the refinery and petrochemicals sector. The company says it expects to increase sales of the combined catalyst business to significantly more than €500 million by the end of 2025 without the need for investment in new capacities.
For more information, visit: www.evonik.com
