Corporate | 3 January 2017 14:45
Evonik Industries AG: Evonik successfully completes acquisition of Air Products specialty additives business
|
DGAP-News: Evonik Industries AG / Key word(s): Mergers & Acquisitions
Evonik successfully completes acquisition of Air Products specialty additives business – Transaction approved by antitrust authorities – Integration process underway – Synergies of US$80 million and tax benefits with net present value exceeding US$500 million over the coming years – Expected to increase adjusted earnings per share in the 2017 business year Essen, January 3, 2017 – Evonik Industries AG has completed the activities to acquire the specialty additives business (Performance Materials Division) of the US company Air Products, Inc. for US$3.8 billion (approx. EUR3.5 billion) by the end of the year as planned. The closing is scheduled for January 03, 2017. All relevant antitrust authorities have approved the transaction and the integration of the acquired business is underway. The transaction financing was completed successfully in September and will consist of the company’s own funds in the amount EUR1.6 billion, with the other half to be financed by bonds with a nominal value of EUR1.9 billion. “The successful completion of the acquisition paves the way for swiftly merging the activities of Evonik and the acquired units of the Air Products Performance Materials business,” said Klaus Engel, Chairman of the Executive Board of Evonik Industries AG. “It puts Evonik in an excellent position for further profitable growth in the attractive specialty additives market.” “We are well prepared to ensure a smooth business transition and a successful integration. To this end, we have worked intensively with Air Products over the past few months to develop integration plans,” confirmed Ralph Sven Kaufmann, Chief Operating Officer and Executive Board member responsible for the integration.
Positive EPS in the 2017 business year
The acquisition is expected to increase the adjusted earnings per share (EPS) of Evonik in the 2017 business year. Since the transaction is partly structured as an asset deal, it will lead to tax benefits as a consequence of write-offs which are typical for transactions of this nature. These benefits amount to a net present value of more than US$500 million, which can be used on a prorated basis in the 2017 business year.
Additional information on the Air Products Specialty & Coating Additives business
Company information
Evonik is active in over 100 countries around the world. In fiscal 2015 more than 33,500 employees generated sales of around EUR13.5 billion and an operating profit (adjusted EBITDA) of about EUR2.47 billion.
Disclaimer
Contact: Tim Lange Head of Investor Relations Phone +49 201 177-3150 tim.lange@evonik.com
Evonik Industries AG
Supervisory Board
Registered Office is Essen
03.01.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
|
| Language: | English |
| Company: | Evonik Industries AG |
| Rellinghauser Straße 1-11 | |
| 45128 Essen | |
| Germany | |
| Phone: | +49 (0) 201 177-01 |
| Fax: | +49 (0) 201 177-3475 |
| E-mail: | investor-relations@evonik.com |
| Internet: | www.evonik.com |
| ISIN: | DE000EVNK013, XS0911405784 |
| WKN: | EVNK01, A1TM7T |
| Indices: | MDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Luxemburg |
| End of News | DGAP News Service |