Advent closes in on deal for Evonik acrylic sheets unit
Private equity group Advent International is close to signing a deal to acquire a business that makes clear acrylic sheets from the German chemicals company Evonik, according to three people with knowledge of the situation.
The deal could value the unit at as much as €3bn including debt, said one person involved in the process. Both Evonik and Advent declined to comment.
Evonik was aiming to make an announcement with its fourth-quarter financial results on Tuesday morning, according to two people, however they warned this might not happen.
Other prospective bidders that were said to be involved in the race for the methacrylates business included private equity firm SK Capital, a consortium of Triton and Rhone Capital, as well as the petrochemicals group Ineos.
Evonik is divesting what is a commodity business as it seeks to narrow its portfolio and focus on more speciality chemicals.
The methacrylates unit is expected to generate €400m in adjusted earnings before interest, tax, depreciation and amortisation for 2018 on sales of €1.9bn, with 3,700 employees across 18 sites.
Its products include the high-volume monomer methyl methacrylate and polymethyl methacrylate (PMMA), which is often used as a shatter-resistant alternative to glass in the automotive, construction and lighting industries and is sold by Evonik under the Plexiglas brand. The German group is the second-largest producer of both substances.
Analysts have forecast group adjusted ebitda of €2.6bn on sales of €15bn in 2018.