Evonik Industries AG said it has signed an agreement to sell its superabsorbents business to International Chemical Investors Group for an enterprise value in the low triple-digit million euro range, said the company.
The agreement also includes the assumption of pension obligations by ICIG, the company said. The final transfer of the business is planned for mid-2024 following approval by the relevant competition authorities, it said.
Evonik’s superabsorbents business generated sales of €892 million in 2023, with adjusted EBITDA in the mid double-digit million-euro range. On average over the past five years, it achieved an adjusted EBITDA of around €20 million, the company said.
ICIG is taking over the entire business with around 1,000 employees and superabsorber production facilities at Krefeld and Rheinmuenster, Germany, as well as two locations in the US; in Greensboro, North Carolina, and Garyville, Louisiana. The business also includes plants at Marl, Germany, for production of acrylic acid, the most important raw material for superabsorbents, Evonik said.
Christian Kullmann, chairman of Evonik said that the profile of the superabsorbents business no longer fits Evonik’s character as a specialty chemicals company. This agreement is “the second step in the divestment of our performance materials division,” he said.
The first step was the sale of Evonik’s Luelsdorf site and associated businesses in Wesseling to ICIG last year. The third part of the performance materials division are chemicals from the C4 chain, which is a business that is up for sale too, the company said.
Kullmann said earlier today, during a press conference about the company’s 2023 results, that Evonik will not rush the sale of its C4-chemicals business within the current environment, but will wait for the conditions to improve.
ICIG is an experienced chemical investor that has already announced extensive investments in the Luelsdorf site that it acquired in 2023. ICIG has a workforce of more than 6,200 that generates sales of over €4.6 billion per year.
”With its high technological quality as a new platform within ICIG, the superabsorbents business will offer our group new opportunities for further growth,” said Achim Riemann, chairman of the supervisory board of ICIG.
Superabsorbents are powdered polymers used as absorbent materials in diapers and other hygiene products.
We remind, Evonik Hydroxylterminated Polybutadienes Production CapacityEvonik, a specialty chemicals company, begins work to expand its POLYVEST® HT plant in Marl, Germany. The Coating & Adhesive Resins business line expects the additional production capacity for its hydroxyl-terminated polybutadienes (HTPB), marketed under the brand name POLYVEST®, to be ready as early as the second quarter of 2024 following the double-digit million-euro investment.
mrchub.com