Evonik Sells Agricultural Chemicals Plant in U.S.Evonik Sells Agricultural Chemicals Plant in U.S.

September 4, 2018

2 Min Read
Evonik Sells Agricultural Chemicals Plant in U.S.
Image courtesy of Evonik

Aiming to further hone its focus on specialty chemicals, German firm Evonik recently sold its Jayhawk plant in Galena, KS for agricultural chemical precursors to funds managed by London-based investment firm Permira.

“We want to continue growing profitably in the specialty chemicals sector,” Evonik Executive Board Chairman Christian Kullmann said in a Aug. 31 press release announcing the transaction. “This also means giving up businesses or sites if a different owner can offer the business better future perspectives. The sale is a further step towards optimizing our portfolio and it opens up new opportunities for us in the targeted development of our growth engines.”

The private equity firm is paying a “high double-digit million dollar” sum to acquire the facility from Evonik’s Performance Materials unit. Regulators in several countries must approve the transaction before the sale reaches completion. About 120 workers at the will remain employed at Galena site following the transfer of ownership. 

“We’re looking forward to successfully growing the business in Jayhawk further,” Sebastian Hoffmann, principal and member of Permira’s Industrials Team, said in the release. “We already have a high level of expertise in customer-oriented solutions in fine chemicals, for example through the investment of the Permira funds in CABB.  A strategic cooperation between Jayhawk and CABB will create a seamless transatlantic product and service offering from which existing and new customers of both companies will benefit.”

CABB Group, headquartered in Germany, produces precursors, intermediates, and active substances for fine chemicals. 

In addition to agricultural chemical precursors, the Jayhawk plant produces Dianhydrides, crosslinkers, and high-purity solvants, according to information on Evonik's website.

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