One Equity Partners agreed to sell PeroxyChem, a chemical maker, to Evonik Industries, for $625 million, or around 10.4x Ebitda. The deal is expected to close in mid-2019 subject to regulatory approvals. One Equity acquired PeroxyChem in 2014.
One Equity Partners (“OEP“), a leading middle market private equity firm, today announced the signing of a definitive agreement to sell PeroxyChem, LLC, (“PeroxyChem” or “the Company”), a worldwide manufacturer of peroxygen chemistries, to German Evonik Industries AG (FRA: EVK), a publicly traded global specialty chemicals company, for $625 million, or 10.4 times EBITDA before synergies. The transaction is expected to be completed by mid-2019, subject to regulatory approvals and customary closing conditions.
PeroxyChem, with roots going back over 100 years, is an innovative producer of hydrogen peroxide and peracetic acid serving the food safety, electronics, environmental, energy and other industrial end markets. The company is headquartered in Philadelphia, Pennsylvania and employs approximately 600 people worldwide with eight production sites located mainly in North America but also Germany, Spain and Thailand.
“We have enjoyed partnering with Bruce Lerner and his management team to generate substantial growth and profitability during our ownership of the Company,” said Joseph Huffsmith, Managing Director, OEP. “We believe PeroxyChem is well positioned for continued success under its new ownership.”
Since OEP acquired PeroxyChem in March 2014, the Company has made significant organic and inorganic investments to grow its specialty applications. PeroxyChem opened a hydrogen peroxide purification plant in Saratoga Springs, N.Y. to serve the electronics market, and has begun construction on a waste water treatment facility to serve the City of Memphis, Tenn. Further, the Company executed two acquisitions to grow its food safety and energy segments. PeroxyChem has been able to achieve this growth by embracing a value proposition underscored by compliance, purity, productivity and quality.
“The support of OEP has been exceptionally valuable in helping PeroxyChem to execute its strategy to create a leader in peroxygens chemistry focused on high-growth, high-margin specialty end markets,” said Bruce Lerner, President and CEO of PeroxyChem. “PeroxyChem has a bright future ahead and we look forward to the next chapter of our evolution.”
Barclays is acting as financial advisor to One Equity Partners in connection with this transaction and Dechert LLP is serving as legal counsel.
# # #
About One Equity Partners
OEP is a middle-market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm builds market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 170 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, and Frankfurt. For more information, please visit www.oneequity.com.
PeroxyChem is a global leader in peroxygen and adjacent chemistries. The company employs approximately 600 people throughout the world, with facilities in North America, Europe and Asia. With an unyielding commitment to safety at its core and backed by an exceptional team, the company prides itself on exemplary customer service, product quality, reliability and technical service. PeroxyChem manufactures high quality products and innovative applications developed as a result of dedication to R&D and superior technical expertise. We supply customized chemistries for electronics, energy, environmental, food safety, pulp, paper, polymer, and other industrial and consumer markets. To learn more, please visit http://www.peroxychem.com.
About Evonik Industries
Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-orientated innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 36,000 employees. In fiscal 2017, the enterprise generated sales of €14.4 billion and an operating profit (adjusted EBITDA) of €2.36 billion.