Evonik Buys Wilshire Techologies
German specialty chemicals company Evonik has agreed to buy Wilshire Technologies, a US-based supplier of phytochemicals and derivatives to the global cosmetic and pharmaceutical industries.
Evonik said the addition of Wilshire will support the ongoing transformation of its cosmetics active ingredients portfolio toward sustainable and natural-based products. For example, it will be able to use Wilshire’s plant-derived cholesterol to replace animal-originated ingredients.
“This latest acquisition allows us to continue our efforts in fortifying the flexibility of our products and technology platforms, while providing our customers with the bio-based products their markets demand,” commented Tammo Boinowitz, head of Evonik’s Care Solutions business, which will be the new home for the cosmetics part of Wilshire’s portfolio.
Wilshire’s products will also expand Evonik’s Health Care business line for naturally derived excipients and intermediates for pharmaceutical and food applications.
Financial details of the transaction set to complete by the end of this month were not disclosed. All 10 Wilshire employees will transfer to Evonik.
In separate news, Evonik’s majority owner RAG-Stiftung, the trust charged with winding up the German coal industry, has sold around 5.4% of its stake via a private placement to institutional investors. The shares were sold for €25.30 each, yielding a total of €632.5 million.
RAG-Stiftung still holds approximately 59.1% in Evonik. It also has three outstanding bonds that are exchangeable into Evonik shares and said it intends to use the proceeds to further diversify its portfolio and potentially refinance its existing liabilities.
“Evonik has made substantial progress in its transformation into a best-in-class specialty chemicals company and we are fully supportive of the management’s strategy and long-term value creation,” said RAG-Stiftung’s executive board chairman, Bernd Tönjes. “After reducing our holding in Evonik, we intend to continue to be a long-term, significant shareholder, with an interest in a positive share price development of Evonik.”