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Source: Evonik

03. January 2017

Evonik completes acquisition of Air Products’ specialty additives business

Evonik Industries AG announced today, that it has completed the activities to acquire the specialty additives business (Performance Materials Division) of Air Products, Inc. for USD 3.8 billion (approximately EUR 3.5 billion) by the end of 2016 as planned. Evonik says that the closing is scheduled for 3 January 2017. 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 EUR 1.6 billion, with the other half to be financed by bonds with a nominal value of EUR 1.9 billion.

“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.

Evonik said that the annual synergy effects in the amount of USD 80 million can be confirmed at this time and should be fully realized by 2020 at the latest. The company expects to leverage synergies in the amount of EUR10 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 USD 500 million, which can be used on a prorated basis in the 2017 business year.

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