December 12th, 2016
The Valence Group has advised Evonik on its acquisition of the silica business of J.M. Huber for $630 million. Huber Silica is a world class, global precipitated silica business, focused primarily on dental and life science applications, with revenue of close to $300 million and an EBITDA of $60 million in 2016. The business is highly complementary to Evonik’s silica business in predominantly tires, coatings and industrial applications, and Evonik expects to generate sustainable EBITDA synergies of $20 million by 2021. Additionally, the transaction is structured to yield $80 milion in net present value tax benefits to Evonik.
The acquisition, announced on Dec 9, 2016, is scheduled to be completed in the second half of 2017, subject to approval by the responsible authorities.
The Valence Group also acted as financial advisor to Evonik earlier this year on its $3.8 billion acquisition of Air Products’ Performance Materials business.
Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Profitable growth and a sustained increase in the value of the company form the heart of Evonik’s corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2015 more than 33,500 employees generated sales of around €13.5 billion and an operating profit (adjusted EBITDA) of about €2.47 billion.
About The Valence Group
The Valence Group is a specialist investment bank offering M&A advisory services exclusively to companies and investors in the chemicals, materials and related sectors. The Valence Group team includes a unique combination of professionals with backgrounds in investment banking and strategy consulting within the chemicals and materials industries, all focused exclusively on providing M&A advisory services to the chemicals and materials sector. The firm’s offices are located in New York and London.