MOSCOW (MRC) -- Perstorp, a global leader in specialty chemicals, has announced it has agreed to sell Capa, its caprolactone business, including the production site in Warrington, to Ingevity for approximately EUR590 million, as per the company's press release.
The business has annual revenues of approximately EUR150 million.
Under Perstorp’s leadership during the last 10 years, Capa’s operating margins have increased by almost 50% by investing in production and new product lines, which in turn have increased both the customer base and the geographic reach. This has made Capa a highly attractive asset, gaining interest among several potential buyers of which Ingevity now will be the new owner to continue to develop the long-term value of the business. Ingevity will acquire Perstorp UK Ltd including Perstorp’s entire caprolactone business.
The sale of Capa will unlock significant value and is in line with Perstorp’s track record of successful divestments such as most recently the BioFuels Business and in 2017, the Belgian site in Gent.
It will furthermore enable the Perstorp Group to focus its business opportunities and future growth prospects on its Polyol, Oxo and Feed businesses, maximizing opportunities such as:
- further building leadership in the polyol business;
- expand the markets for phthalate free plasticizer Pevalen;
- expand the markets for products within the animal nutrition area;
- establishing its pro-environment solutions as the first choice (certified products based on renewable raw materials.
Jan Secher, President and CEO of Perstorp, commented: "We have a strong track record in delivering optimum value from our businesses. Capa is an excellent proof of this and where the business will continue to have a bright future. This sale realizes the significant value of the asset, simplifies Perstorp Group, strengthens our balance sheet and allows us to focus our future investment and innovation in attractive high growth segments. Our strategy remains to leverage Perstorp’s superior positions and expertise in chemistry and engineering to drive innovation and provide our customers with solutions that advance everyday life."
The transaction is subject to certain regulatory approvals and other customary closing conditions, and Perstorp expects to close the transaction in the first quarter of 2019.
HSBC Bank plc acted as financial adviser and Allen & Overy acted as legal counsel to Perstorp.
As MRC wrote previously, in December 2017, Perstorp announced world’s first portfolio of renewable alternatives to the essential polyols Pentaerythritol (Penta), Trimethylolpropane (TMP), and Neopentyl glycol (Neo). The product portfolio will be globally launched at China Coat. The launch is a response to the fast growing global need for more sustainable Coatings, Resins and Synthetic Lubricants to mention a few. This means that Perstorp is the only chemical company in the world to offer all three essential polyols Penta, TMP and Neo in both traditional and renewable forms.
Perstorp is one of the world leaders in various sectors of the specialty chemicals market, it's pioneer in formalin chemistry, plastics and surface materials. Perstorp was founded in 1881 and is controlled by PAI partners,a major European private equity company. The company has around 1,500 employees in with 22 production plants in Europe, Asia and North America.
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