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Evonik Completes Purchase of Air Products’ Specialty Additives Business

Published on 2017-01-04. Author : SpecialChem

Essen -- Evonik Industries AG has completed the activities to acquire the specialty additives business (Performance Materials Division) of the US company Air Products, Inc. for USD 3.8 billion (approx. €3.5 billion) by the end of the year as planned. All relevant antitrust authorities have approved the transaction and the integration of the acquired business is underway. The transaction financing was completed successfully in September and will consist of the company’s own funds in the amount €1.6 billion, with the other half to be financed by bonds with a nominal value of €1.9 billion.

Evonik Air Products
Evonik Completes Purchase of Air Products’ Specialty Additives Business

USD 3.8 Billion Deal


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,” said Klaus Engel, Chairman of the Executive Board of Evonik Industries AG. “It puts Evonik in an excellent position for further profitable growth in the attractive specialty additives market.

We are well prepared to ensure a smooth business transition and a successful integration. To this end, we have worked intensively with Air Products over the past few months to develop integration plans,” confirmed Ralph Sven Kaufmann, Chief Operating Officer and Executive Board member responsible for the integration.

Positive EPS in the 2017 Business Year


The annual synergy effects in the amount of US$80 million can be confirmed at this time and should be fully realized by 2020 at the latest. Evonik expects to leverage synergies in the amount of €10 to 20 million in the year 2017.

The acquisition is expected to increase the adjusted earnings per share (EPS) of Evonik in the 2017 business year.

Since the transaction is partly structured as an asset deal, it will lead to tax benefits as a consequence of write-offs which are typical for transactions of this nature. These benefits amount to a net present value of more than US$500 million, which can be used on a prorated basis in the 2017 business year.

About Air Products’ Specialty & Coating Additives Business

The Specialty & Coating Additives business of Air Products is the Performance Materials Division within the Materials Technologies Segment of Air Products and Chemicals, Inc. It has around 1,100 employees at 11 production and development locations and offers local customer support in all key global regions.

About Air Products

Air Products is one of the world-leading Industrial Gases companies celebrating 75 years of operation. The company’s core Industrial Gases business provides atmospheric and process gases and related equipment to manufacturing markets, including refining and petrochemical, metals, electronics, and food and beverage. Air Products is also the world’s leading supplier of liquefied natural gas process technology and equipment. The company’s Materials Technologies business serves the semiconductor, polyurethanes, cleaning and coatings, and adhesives industries.

About Evonik

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals, operating in the Nutrition & Care, Resource Efficiency and Performance Materials segments. The company benefits from its innovative prowess and integrated technology platforms. In 2015 more than 33,500 employees generated sales of around €13.5 billion and an operating profit (adjusted EBITDA) of about €2.47 billion.


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Source: Evonik
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