Ukip 2018 results: 3 billion euros for sale of methyl acrylic business

Achieving expectations: Adjusted EBITDA climbed to EUR 2.6 billion, sales increased
4% to EUR 15 billion
2019 Outlook: Adjusted EBITDA decreased slightly or remained stable, free cash flow increased significantly
Of these, all three chemicals segments contributed to profit growth. Despite the difficult external environment in the second half of 2018, Ingtron achieved its mid-year earnings forecast
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the specific data, a graph tells you:
adjusted EBITDA margin climbed to 17.3 percent, about 1 percentage point higher than in 2017. This means that Win has taken an important step towards its medium-term target of 18 to 20 per cent profit margin. In 2018, Win generated free cash flow of 672 million euros.
autumn 2017, Ingtron announced that it would optimize its administrative and sales processes to achieve annual cost savings of 200 million euros by the end of 2020. Of these, 50 million euros in cost savings have been reflected in 2018 earnings. For the remaining 150 million euros, the measures have also been gradually confirmed over the past year.
future
based on the new Sustainability Strategy 2020 plus, Ingtron has set its goal of reducing greenhouse gas emissions by 50% by 2025, with 2008 as the reference year. For important investment decisions, an internal pricing of CO2 will be taken into account. At the same time, Estron is gradually expanding specific business activities to increase the share of products and solutions with specific sustainability benefits. Today, half of the company's sales come from product applications that help customers improve resource efficiency.
despite political uncertainty and weak economic growth, Otsym expects adjusted EBITDA to be flat or slightly below 2018 levels.
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" with the active construction of the portfolio and cost awareness, Win will be a better look to promote this year's transformation. It's not going to be an easy year, but we're ready to meet the challenge and work tirelessly to build a leading specialty chemicals company. "
- Ulser Industrial Group Chairman Kuleman
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business segment performance
resource efficiency business segment:
2018 sales growth of 6% to 5.71 billion euros. The main reasons include higher sales prices, partly due to higher raw material costs, and the acquisition of Chibo's silicon dioxide business in September 2017. Strong demand for coating additives and polyamide 12 for applications in the automotive and 3D printing industries has driven sales in this segment. Adjusted EBITDA for resource efficiency increased by 10% to EUR 1.29 billion.
nutrition and consumer chemicals segment:
's full-year sales rose 3 per cent to EUR 4.65 billion due to higher production and sales prices due to increased global demand. In the pharmaceutical and health business, the polymer applied to intelligent drug supply systems in the pharmaceutical field has been extremely successful, and the polymer is an ingredient in personal care products. Although the price of essential amino acids in feed additives is lower than last year, sales have remained stable due to sales growth. The business segment's adjusted EBITDA rose 8 percent to 810 million euros.
Materials segment:
sales rose 6 percent to 3.98 billion euros in 2018, mainly due to a sharp increase in sales prices. The methyl acrylates business performed well due to continued good market demand, particularly in the coatings and automotive industries, as well as tight market supply. In the second half of the year, low water levels on the Rhine limited the movement of raw materials and goods and led to higher logistics costs. Adjusted EBITDA for the business segment increased 2% to EUR 670 million.
the methyl acrylates business deal
Fctron has signed a contract with Ahong Capital to sell its methyl acrylates business for 3 billion euros. This price (enterprise value) is 8.5 times the EBITDA for this business. The deal is subject to approval by authorities in several countries and is expected to close in the third quarter of this year.
's methyl acrylates business has 18 production sites and 3,900 employees worldwide. From 2016 to 2018, the business had an average annual EBITDA of approximately EUR 350 million and annual sales of approximately EUR 1.8 billion. Ingtrone expects sales and EBITDA to remain at similar levels in 2019.
the deal will include methyl acrylates, acrylic products, the CyPlus product line and some methyl acrylic businesses. In order to implement its corporate strategy of focusing on low-cyclical specialty chemicals, Uctron decided to sell these businesses. Anhong Capital is one of the world's most experienced private equity firms in the chemical industry and has invested in more than 30 chemical projects over the past 30 years.
difference between the sale price and the net sale price (equity value) of about 500 million euros, mainly for pension obligations. Win will use the proceeds from the sale to strengthen its financial position and invest in growth projects.