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Evonik provides One Equity with PeroxyChem exit
Posted on Thursday, 08 November 2018 14:52
One Equity Partners is making a return on PeroxyChem by selling the hydrogen peroxide, peracetic acid, persulfates manufacturer, which was carved out from FMC for USD 200.00 in 2014 million, to Evonik for USD 625.00 million.
The enterprise value equates to roughly 10.4 times for USD 625.00 million annual adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of USD 60.00 million, for USD 625.00 million.
Hydrogen peroxide and peracetic acid are oxidants with multiple uses across fields such as environmental, electronics, food and beverage, and other specialities.
Applications include: bleaching agent in the pulp industry; disinfectant for food processing or for wastewater treatment; cleaning agent in semiconductor fabrication; and sterilisation of medical equipment.
The Pennsylvanian company has eight manufacturer facilities across the US, Canada, Germany, Spain and Thailand, two distribution sites, five regional offices and three research and development laboratories.
It will provide Evonik’s active oxygens division, which has 13 production plants globally, with increased exposure to the speciality category, which will account for pro forma 65.0 per cent of the enlarged peroxide portfolio.
Applications within this segment include wastewater disinfection, where peracetic acid is expected to benefit from robust growth in the near future due to it being a greener alternative to chlorine and sodium hypochlorite.
Within electronics ultra-high purity hydrogen peroxide is essential, especially as the increasing trend towards smaller device geometries is resulting in more process steps.
The food and beverage sector relies on peracetic acid in poultry and meat processing and for hygienic requirements in the production of juices or natural drinks.
PeroxyChem already generates about three-quarters of its earnings with speciality applications in the environment, food safety and electronics semiconductor industries.
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