Evonik to buy Porocel for $210 MM to grow catalyst business
German chemicals group Evonik Industries said it agreed to buy U.S. group Porocel for $210 million to accelerate growth at its catalyst business.
The deal, which Evonik expects to finalize by the end of 2020, would give Evonik access to regeneration of desulfurization catalysts, and also to additional production capacities for its own catalysts, the company said.
Porocel owns a technology to rejuvenate used desulfurizationn catalysts, which are chemicals that are needed to make low-sulfur fuels.
Evonik said that the rejuvenation process causes less than half the carbon dioxide emissions that are associated with the production of new desulfurization catalysts.
The purchase price amounts to 9.1 times the target’s annual adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), Evonik said.
Reporting by Bartosz Dabrowski and Ludwig Burger in Frankfurt, editing by Emma Thomasson
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