Evonik to Pay $3.8 Billion for Air Product's Materials Unit
May 06 2016 - 9:00AM
Dow Jones News
FRANKFURT—Germany's Evonik Industries AG has agreed to buy the
performance materials division of Air Products & Chemicals Inc.
for $3.8 billion.
Evonik said Friday the deal was expected to generate $80 million
in synergies annually, and to be completed by year-end.
The announcement confirms a report by The Wall Street Journal in
March that Evonik was in exclusive talks to buy Air Products'
performance materials unit, which had sales of $245 million in the
quarter ended Dec. 31.
"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," said
Evonik's Chief Executive Klaus Engel.
Evonik has been vocal about wanting to do a significant deal to
gain size and improve margins for some time. Mr. Engel said in
March that the company continued to seek a large acquisition.
For Air Products, which has a market value of nearly $30
billion, the transaction is part of a broader overhaul. About seven
months ago, the company said it aimed to split into two publicly
traded companies.
Write to Eyk Henning at eyk.henning@wsj.com
(END) Dow Jones Newswires
May 06, 2016 08:45 ET (12:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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