Düsseldorf, Germany — Evonik Performance Materials expects to complete the $3.8 bn purchase of Air Products’ specialty chemicals business by year-end. Evonik has no plans to sell its Performance Materials division, confirmed Johann-Caspar Gammelin, chairman of the board of management, at an Oct. 20 news conference at K 2016.
K2016: Air Products purchase on track for year end: Evonik's Gammelin
During the conference, he moved to squash persistent rumors about Evonik’s commitment to its Performance Materials division.
“There are no plans whatsoever to sell the segment or enter into a joint venture with another company. The business is profitable, although it does not generate the same high margins as the other segments,” he said.
Gammelin added later that the Performance Materials business generates significant amounts of free cash, which is used to “grow the rest of the business.”
He confirmed that the purchase of Air Products’ Materials Technology division, which makes amine catalysts for polyurethanes, is likely to complete by the end of the year.
“It is rare to buy a business in the chemical industry without also having to buy something you don’t want,” Gammelin said after the news conference.
Evonik makes a range of silicone foam stabilizers for polyurethanes.
“It is a really complementary fit with our existing business; as additive suppliers, we have similar cultures and Air Products has a strong R&D pipeline,” he added.