Evonik acquires air products specialty chemicals and coating additives business for US$3.8 billion

Enhance innovation strength

Like Evonik, Air Products' specialty chemicals and coating additives are also solution-oriented.
Its business model is to cooperate closely with customers in research and development and provide customers with high-quality technical services.
This acquisition will enable Evonik to significantly enhance its innovation leadership.

Increased synergy potential and tax incentives

By optimizing production and logistics, marketing and sales, and management, the company expects to generate $60 million in cost synergies each year.
These benefits will be fully realized by 2020 at the latest.

In addition, Evonik will achieve revenue synergy by integrating innovative activities, coordinating their respective customer bases and product portfolios, and making full use of geographical advantages.
In total, the transaction is expected to generate $80 million in synergies per year.

Part of the transaction is carried out through asset acquisition, so as to obtain the unique tax benefits of this transaction method.
The net present value of these benefits will exceed $500 million.

Transaction financing

Half of the acquisition funds will be paid by the company's own funds, and the other half will be raised through additional debt.
After the transaction, Evonik will maintain a strong balance sheet and continue to strive for a solid investment rating.

The acquisition has yet to be formally approved by the relevant anti-monopoly authorities.
(Source: Global Coatings Network) (For more information, please log in: Global Coatings Network http:// )