Evonik to Sell its Methacrylates Business to Advent International

Evonik (U.S. office Parsippany, N.J.) has signed an agreement to sell its Methacrylates business to private equity company Advent International, Boston, Mass., one of the most experienced financial investors in the chemical industry in the world, with more than 30 investments over three decades. The $3.4 billion selling price (enterprise value) is 8.5 times the business’ EBITDA (earnings before interest, tax, depreciation and amortization). Subject to approval by authorities in several countries, the transaction is expected to close in the third quarter of this year.

The Methacrylates business  has 18 production sites and 3,900 employees worldwide. The transaction is comprised of  the Methacrylates, Acrylic Products and CyPlus business lines (formerly Cyro), and some of the methacrylate resins activities. Evonik put these operations on the market as part of its systematic strategy of sharpening its focus on specialty chemicals, which are less cyclical.

Evonik will use the sale proceeds to strengthen its balance sheet with a focus on targeted growth projects. That includes funding the purchase price of Philadelphia-based PeroxyChem, which Evonik plans to close 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.