Evonik Sells US Jayhawk Site to Permira
Evonik is selling its Jayhawk site in Galena, Kansas, USA, as it takes the next step to focus on specialty chemicals. The German group has agreed a share deal under which funds advised by investment firm Permira will acquire the site along with the company and its staff of about 120 people, for a high double-digit million dollar sum.
The transaction remains subject to approval by antitrust authorities in several countries.
Jawhawk’s activities fall under the agrochemicals & polymer additives business line in Evonik’s Performance Materials segment and the site produces precursors for agrochemicals, which are not included in the growth business defined by Evonik.
“We want to continue growing profitably in the specialty chemicals sector,” said Evonik’s CEO Christian Kullmann. “This also means giving up businesses or sites if a different owner can offer the business better future perspectives. The sale is a further step towards optimizing our portfolio, and it opens up new opportunities for us in the targeted development of our growth engines.”
Sebastian Hoffmann, principal and member of the Industrials Team at Permira, said a strategic cooperation between Jayhawk and CABB, one of the private equity firm’s portfolio companies based in Sulzbach, Germany, would create a “seamless transatlantic product and service offering.”
Permia bought fine and specialty chemicals manufacturer CABB International in 2014 for €819 million. CABB was originally established in 2003 through the reorganization of Clariant’s acetyls operations.