03.01.2017
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DGAP-News: Evonik Industries AG: Evonik successfully completes acquisition of Air Products specialty additives business
DGAP-News: Evonik Industries AG / Key word(s): Mergers & Acquisitions
Evonik Industries AG: Evonik successfully completes acquisition of Air
Products specialty additives business
03.01.2017 / 14:45
The issuer is solely responsible for the content of this announcement.
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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 annual synergy effects in the amount of US$80 million can be confirmed
at this time and should be fully realized by 2020 at the
latest. Evonik expects to leverage synergies in the amount of EUR10 to 20
million in the year 2017.
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
The Specialty & Coating Additives business of Air Products is the
Performance Materials Division within the Materials Technologies Segment of
Air Products and Chemicals, Inc. It has around 1,100 employees at 11
production and development locations and offers local customer support in
all key global regions.
Company information
Evonik, the creative industrial group from Germany, is one of the world
leaders in specialty chemicals. Profitable growth and a sustained increase
in the value of the company form the heart of Evonik's corporate strategy.
Its activities focus on the key megatrends health, nutrition, resource
efficiency and globalization. Evonik benefits specifically from its
innovative prowess and integrated technology platforms.
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
In so far as forecasts or expectations are expressed in this Investor
Relations News or where our statements concern the future, these forecasts,
expectations or statements may involve known or unknown risks and
uncertainties. Actual results or developments may vary, depending on
changes in the operating environment. Neither Evonik Industries AG nor its
group companies assume an obligation to update the forecasts, expectations
or statements contained in this release.
Contact:
Tim Lange
Head of Investor Relations
+49 201 177-3150
[email protected]
Evonik Industries AG
Rellinghauser Straße 1-11
45128 Essen
Germany
Phone +49 201 177-01
Fax +49 201 177-3475
www.evonik.com
Supervisory Board
Dr. Werner Müller, Chairman
Executive Board
Dr. Klaus Engel, Chairman
Christian Kullmann, Deputy Chairman
Dr. Ralph Sven Kaufmann
Thomas Wessel
Ute Wolf
Registered Office is Essen
Register Court Essen Local Court
Commercial Registry B 19474
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03.01.2017 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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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: [email protected]
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
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