- Closing to take place on September 1, 2017
- Acquisition drives forward the portfolio focus on high-margin specialty chemicals
- Expansion of silica business represents boost for “Smart Materials” growth engine
Evonik will complete the acquisition of US company J.M. Huber Corporation’s silica business for US$ 630 million, as planned, in the second half of the year. The transaction will be closed on September 1, 2017 after approval by the relevant authorities. Contributions from the new business will therefore be included in Evonik’s sales and earnings as of this date.
Christian Kullmann, Chairman of the Executive Board of Evonik, said: “With the successful closing of the acquisition, we are strengthening our ‘Smart Materials’ growth engine by continuing to expand our globally leading position in the silica business.”
The newly acquired business will be integrated into the Resource Efficiency Segment. The intensive planning work that has been done for the integration over the past few months will be put into action straight away.
The acquisition is a perfect match for Evonik’s product portfolio. Huber Silica is especially oriented towards applications in the consumer goods industry, the dental sector for example. To date, Evonik’s silica business has been more focused on industrial applications, for example in the tire and coatings industries.
For the 2016 financial year, Huber Silica achieved sales of close to US$ 300 million and an adjusted EBITDA of US$ 60 million.