Category: General News
Posted Dec 10, 2016 22:03 (GMT +7)
J.M. Huber Corporation Reaches Agreement to Sell Silica Business to Evonik for $630 Million
The J.M. Huber Corporation announced today that it has signed a definitive agreement to sell the Silica business unit of Huber Engineered Materials (HEM) to Evonik Industries AG—a global specialty chemicals company.
The transaction will include HEM’s Silica facilities in North America, Europe and Asia. Until the transaction closes, Silica continues to operate as part of HEM. For 2016, Huber’s Silica business unit is expected to achieve revenue close to $300 million and an adjusted EBITDA of approximately $60 million.
The sale of Silica will not affect HEM’s other business units, which include Fire Retardant Additives and Ground Calcium Carbonate.
Mike Marberry, President and Chief Executive Officer of Huber, noted, “Silica has been part of Huber since the 1950s and paved the way for the Company’s global expansion in engineered materials. While it is difficult to part with a longstanding business, we expect Evonik to be an excellent fit for our Silica customers and our Silica employees.” The transaction is subject to government approvals and is expected to be completed within the second half of 2017.
Explained Marberry, “Once the deal is closed, Huber expects to redeploy the proceeds from this sale to strategically invest in our core engineered materials businesses to further strengthen our portfolio of specialty products.”
By integrating Huber’s silica operations into its business, Evonik will be able to expand its position primarily in North America and Asia. “Huber Silica will be an outstanding reinforcement for our growth segment Resource Efficiency,” said Klaus Engel, Chairman of the Executive Board of Evonik. “In addition, it will offer the opportunity to strategically develop Evonik’s corporate portfolio.”
Huber’s Silica business is oriented towards the dental care sector. To date, Evonik’s silica business has been focused more strongly on industrial applications, for example in the tire and coatings industry. Bringing together these two entities will create a global integrated silica business that is better positioned to serve customers around the world.
Representing J.M. Huber in the transaction were BofA Merrill Lynch, Moelis & Company LLC, and Jones Day.
About J.M. Huber Corporation (www.huber.com)
J.M. Huber Corporation, headquartered in Edison, New Jersey (U.S.), operates a portfolio of companies with a focus on its core engineered materials businesses. Founded in 1883, today Huber is one of the largest family-owned companies in the U.S. The diversified, multinational company creates products that are used in a broad range of consumer and industrial applications, including fire retardant additives and smoke suppressants, personal care, food, beverage, pharmaceuticals and building materials.
About Huber Engineered Materials (www.hubermaterials.com)
Huber Engineered Materials, headquartered in Atlanta, Georgia (U.S.), is a global business focused on engineered specialty ingredients that enhance the performance, appeal and processing of a broad range of products used in industrial and consumer-based applications. With an expertise in inorganic materials, it has a portfolio of high value products: specialty silicas and silicates, alumina trihydrate, magnesium hydroxide, molybdate compounds and industrial, food and USP grade calcium carbonate.
About Evonik Industries AG (www.evonik.com)
Evonik is a global leader in specialty chemicals, active in more than 100 countries world-wide. In its fiscal year 2015, more than 33.500 employees generated sales of about Euro 13.5 billion and an operative, adjusted EBITDA of about Euro 2.47 billion.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161209005413/en/
J.M. Huber Corporation
Robert Currie, 732-603-5746
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