One Equity Exits PeroxyChem
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One Equity Exits PeroxyChem

One Equity Partners has agreed to sell PeroxyChem to Evonik Industries AG for $625 million. One Equity acquired PeroxyChem (formerly FMC Global Peroxygens) in March 2014 from FMC Corporation for approximately $200 million.

PeroxyChem is a manufacturer of hydrogen peroxide, peracetic acid, calcium peroxide, and persulfates in a range of concentrations and purities. The company’s products are used in applications in electronics, energy, environmental, food safety, pulp, paper, polymer, and other industrial and consumer markets.

PeroxyChem, led by CEO Bruce Lerner, is headquartered in Philadelphia and employs approximately 600 people worldwide with eight production sites located mainly in North America but also in Germany, Spain, and Thailand (www.peroxychem.com).

“We are excited about the opportunity to join forces with Evonik and make our successful business even stronger. The complementary fit of the two businesses will unlock new and attractive growth opportunities for our customers and employees,” said Mr. Lerner.

PeroxyChem is one of the top suppliers of ultra-pure hydrogen peroxide used in the electronics industry for a variety of needs, including semiconductor wafer cleaning, and the company’s peracetic acid formulations are widely used as sanitizers, disinfectants and sterilizers. PeroxyChem’s products are also used to help stimulate oil and gas wells, treat water in fracturing applications, allow for the reuse of water at fracturing sites and control hydrogen sulfide.

PeroxyChem expects revenues of approximately $300 million and an adjusted EBITDA of around $60 million in 2018. According to Evonik, the purchase price including synergies (estimated at $20 million by 2022) is about 7.8 times the annual adjusted EBITDA, or 10.4 times before synergies.

One Equity Partners is a middle-market private equity firm that invests in industrial, healthcare, and technology companies that are based in North America and Europe. Since 2001, the firm has invested in more than 150 transactions worldwide. One Equity, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York and Chicago, and an advisory office in Frankfurt, Germany (www.oneequity.com).

Evonik Industries AG is one of the largest specialty chemicals company in the world with annual revenues of €14 billion in 2017. The company is publicly traded on the Frankfurt Stock Exchange (FWB: EVK) and is headquartered in Essen, Germany (www.evonik.com).

This transaction is expected to close by mid-2019.

© 2018 Private Equity Professional | November 8, 2018

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