Evonik will acquire Air Products’ specialties

Abstract

Air Products & Chemicals has agreed to sell its performance materials division to the German specialty chemical maker Evonik Industries for $3.8 billion in cash. The division had been earmarked for inclusion in Versum Materials, the new chemical company that Air Products intends to spin off. Versum will now only include Air Products’ electronic materials business. The performance materials division generated $241 million in pretax profits and about $1 billion in sales over the 12 months ending March 31. The division’s largest business, at about 40% of its sales, is epoxy-curing agents. It also makes polyurethane catalysts and specialty additives for coatings and other sectors. Evonik says these businesses closely intertwine with its own. “With this acquisition, we are expanding our portfolio with precisely the right markets, products, and innovations and continuing to invest in our growth and profitability,” Evonik CEO Klaus Engel says. Engel told financial analysts that the