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Evonik to Buy U.S. Chemicals Firm PeroxyChem for $625M
November 8, 2018
2 Min Read
Image courtesy of Evonik
German specialty chemicals firm Evonik Industries AG entered into an agreement this week to acquire U.S. hydrogen peroxide (H₂O₂) and peracetic acid (PAA) manufacturer and supplier PeroxyChem for $625 million.
“PeroxyChem will significantly strengthen our growth segment Resource Efficiency,” Christian Kullmann, chairman of Evonik’s executive board, said in a press release. “We are expanding our portfolio of environmentally friendly and high-growth specialty applications. Furthermore, we are getting an attractive business characterized by above-average growth, moderate capital intensity and low cyclicality.”
Based in Philadelphia, PA, PeroxyChem provides H₂O₂and PAA to a wide range of industries including food processing, pharmaceutical and cosmetics, chemicals and polymers, oil and gas production and pulp and paper. According to Evonik, more than 75% of its earnings are generated by specialty applications sales to the environmental, food safety, and electronics semiconductor industries.
“We are excited about the opportunity to join forces with Evonik and make our successful business even stronger. The complementary fit of the two businesses will unlock new and attractive growth opportunities for our customers and employees,” said PeroxyChem Chief Executive Officer Bruce Lerner in a statement.
The companies expect the transaction to close by mid-2019 following approval by regulators.
600 workers are employed by PeroxyChem across its footprint, which includes manufacturing facilities in North America, Germany, Spain, and Thailand.
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