German chemicals firm Evonik said Monday that it entered into an agreement on July 28 to sell its entire betaines business in the United States, including a production facility in Hopewell, VA, to specialty chemicals supplier Kensing LLC.

“Betaines are an attractive and profitable business, but they are no longer core to Care Solutions’ strategy, which is driven by high-value-added System Solutions. We are convinced, with the new ownership under Kensing, the business will be in good hands for the North plant employees of Evonik,” Yann d'Hervé, head of Evonik’s Care Solutions business line, said in a company release.

The amorphous surfactants are used as ingredients in shampoos, hair conditioners, skin care products, and other personal care and consumer applications.

Evonik sold its betaine business in the UK in August 2020 and consolidated its European manufacturing activities that November. The company plans to retain a part of its Virginia facility to produce additives for polyurethane foam manufacturing, and agricultural and industrial applications.

“The amphoteric surfactants and specialty esters manufacturing operations that Kensing will acquire as a result of this transaction are complementary to our existing product portfolio derived from plant-based feedstocks,” said Serge Rogasik, Chief Executive Officer of Kensing, in a separate release. “Building on our leadership position in high-purity anionic surfactants, by acquiring the business, we are expanding Kensing’s presence in personal care and home care ingredients to provide our customers with an expanded range of low-detergency product and service offerings.”

Kensing and Evonik expect the deal to conclude in the third quarter of this year pending regulatory approvals and customary closing conditions.