NEWS
Evonik sells site to ICIG
Evonik has agreed to sell its site at Niederkassel-Lülsdorf , Germany , and the associated cyanuric chloride business at Wesseling to International Chemical Investors Group ( ICIG ). Terms were not disclosed and the deal is scheduled to close in mid-2023 , subject to regulatory clearance and approval by the competent Evonik committees . The businesses being divested had sales of around € 260 million in 2022 .
This is part of the planned sale of the non-core Performance Materials division . Lülsdorf is described as a “ substantial part ” of the Functional Solutions business line , one of three within the division . The 600 + employees will all transfer to ICIG , which owns WeylChem among other businesses . It has subsidiaries active in chlorine chemistry and speciality chemicals , which it wants to expand .
Evonik is retaining the alkoxides business for biodiesel , which are produced at two further sites . This business is now integrated into the Catalysts business line in the Smart Materials division . ICIG will produce alkoxides at Lülsdorf exclusively for Evonik until 2027 .
This also means that plans made by another potential investor to produce ethylene oxide at the site , something that raised public concern , have been abandoned . Instead , ICIG intends to invest in facilities for renewable energies as well as further investment in production at Lülsdorf .
Lülsdorf is part of the Functional Solutions business line
Separately , Evonik is making a “ mid-double-digit million euro investment ” in a production facility for its Aeroxide brand of fumed aluminium oxide at its site in Yokkaichi , Japan . This will be its first alumina plant in Asia and will be geared to making ultra-thin separator coatings for the next generation of lithiumion batteries for electric vehicles .
Construction will begin this summer for a scheduled opening in 2025 . Yokkaichi has operated as a joint venture between Evonik and Mitsubishi Materials for over 50 years and has many years experience in fumed oxide production processes . The current expansion is described as part of a network of eight fumed oxide production sites globally and “ a key milestone of the strategic growth plan on speciality applications ”.
Solenis to acquire Diversey
Speciality chemicals manufacturer Solenis has agreed to buy cleaning , infection prevention and hygiene giant Diversey . The $ 4.6 billion all-cash deal should be completed in 2H , subject to approval by Diversey shareholders , and will remove Diversey from public ownership . Solenis CEO John Panichella will lead the combined entity following transition and integration .
Platinum Equity-owned Solenis will pay $ 7.84 / share to Diversey ’ s main owner , Bain Capital , which will roll over 56 % of its stake into an affiliate of Solenis and sell the remainder to Solenis at the same price . Other shareholders will receive $ 8.40 / share , which represents a 41 % premium on the closing share price on 7 March , the last full trading day prior to the announcement .
This opens up new markets for Solenis , which focuses on waterintensive industries such as pulp , packaging paper and board , tissue and towel , oil and gas , petroleum refining , chemical processing , mineral processing , biorefining , power , municipal , and pool and spa . It currently employs about 6,500 in 130 countries , compared to Diversey ’ s 9,000 in 80 .
Solenis itself is the result of multiple mergers , beginning when private equity investor Clayton , Dubilier & Rice acquired the water treatment business of Ashland in 2014 . The firm merged with BASF ’ s paper wet-end and waterchemicals business in 2019 . Two years later , Platinum Equity acquired Solenis and merged it into its existing water treatment subsidiary Sigura to create a player with $ 3.5 billion / year in sales .
Since then , the firm has made five bolt-on acquisitions . Most recently , in early February , it completed those of acquire the paper process chemicals business of Kolb Distribution , a unit of KLK Kolb , and Limabased Grand Invest Group . None , however , was remotely as big as the deal with Diversey .
6 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981