Middle market private equity firm One Equity Partners (OEP) is to sell PeroxyChem, a worldwide manufacturer of peroxygen chemistries, to German Evonik Industries AG, a publicly-traded global speciality chemicals company, for USD625 million, or 10.4 times EBITDA, before synergies.
The transaction is expected to be completed by mid-2019, subject to regulatory approvals and customary closing conditions.
PeroxyChem, with roots going back over 100 years, is an innovative producer of hydrogen peroxide and peracaetic acid serving the food safety, electronics, environmental, energy and other industrial end markets. The company is headquartered in Philadelphia, Pennsylvania and employs approximately 600 people worldwide with eight production sites located mainly in North America but also Germany, Spain and Thailand.
“We have enjoyed partnering with Bruce Lerner and his management team to generate substantial growth and profitability during our ownership of the Company,” says Joseph Huffsmith, Managing Director, OEP. “We believe PeroxyChem is well positioned for continued success under its new ownership.”
Since OEP acquired PeroxyChem in March 2014, the Company has made significant organic and inorganic investments to grow its specialty applications. PeroxyChem opened a hydrogen peroxide purification plant in Saratoga Springs, NY to serve the electronics market, and has begun construction on a waste water treatment facility to serve the City of Memphis, Tenn. Further, the Company executed two acquisitions to grow its food safety and energy segments. PeroxyChem has been able to achieve this growth by embracing a value proposition underscored by compliance, purity, productivity and quality.
“The support of OEP has been exceptionally valuable in helping PeroxyChem to execute its strategy to create a leader in peroxygens chemistry focused on high-growth, high-margin specialty end markets,” says Bruce Lerner, President and CEO of PeroxyChem. “PeroxyChem has a bright future ahead and we look forward to the next chapter of our evolution.”
Barclays is acting as financial advisor to One Equity Partners in connection with this transaction and Dechert LLP is serving as legal counsel.
