Evonik sells carbon black business to Rhône Capital

Evonik Industries has announced that it has signed an agreement with affiliates of Rhône Capital LLC to sell its carbon black business for over 900 million euros, including the assumption of certain obligations. For its part Evonik reports that it “continues to focus systematically on its core chemical businesses.” Carbon Black is being acquired intact as a whole, with its 1,650 employees, about 500 of whom are based in Germany.
The deal is subject to approval by Evonik’s supervisory board, antitrust authorities etc, but is expected to close during the summer of 2011.

Evonik’s executive board opted to exit the carbon black business in September 2010. The sale process commenced in November 2010. In March 2011 newspaper reports suggested there were four buyers in the running (Advent International, Triton Partners, Rhone Capital, and possibly Cabot Corp.) after Phillips Carbon Black withdrew from the final round of the bidding process.

“With the sale of our carbon black activities to Rhône Capital, we believe that their further development potential is highly promising. We are putting the business in good hands. The transaction is good for Evonik, the future of the carbon black business, and its employees. At the same time, this represents another major step toward a more clear-cut profile for Evonik as a leading specialty chemicals company when it goes public,” says Klaus Engel, chairman of the executive board of Evonik Industries AG.

Rhône Capital commented: “We are proud to succeed Evonik in stewardship of the Carbon Black franchise. We look forward to building on the foundation of Carbon Black’s globally acclaimed technology platform, valued customer relationships and skilled workforce, to support Carbon Black’s continued worldwide growth.”

“We will ensure that the transition to Rhône Capital takes place smoothly for our customers,” explains Thomas Hermann, head of Evonik’s Inorganic Materials Business Unit. The group’s carbon black activities comprise 16 production facilities in eleven countries. Evonik Carbon Black is reportedly the global number three in this market.
 
Rhône was founded in 1996 and is based in New York, London and Paris. Rhône focuses on middle-market private equity investments in businesses with pan-European or trans-Atlantic presence. Rhône’s investment philosophy includes the development of strong, strategic partnerships with the companies in which it invests.

Evonik is active in over 100 countries around the world. In 2010 more than 34,000 employees generated sales of around 13.3 billion euros and an operating profit (EBITDA) of 2.4 billion euros. The carbon black business generated sales revenues of 1.2 billion euros during 2010.

Related news:

• Evonik to Divest Carbon Blacks Business

• Phillips Carbon Black withdraws from Evonik bidding

• Evonik erects isobutene plant at Antwerp site

• Evonik net income tripled in 2010; silica capacity expansion underway

• Evonik raises carbon black prices