United States.
Evonik Industries AG has acquired the silica business of the US company J.M. Huber for US$630 million. This allows Evonik to expand its position in North America and Asia in this business.
"Huber Silica will significantly strengthen our growth in the Resource Efficiency segment," said Klaus Engel, Chairman of the Executive Board of Evonik. "In addition, it offers the opportunity to strategically develop Evonik's portfolio."
"The silica business has been a part of Huber since the 1950s and paved the way for our company's global expansion into engineered materials," said Mike Marberry, Huber's president and chief executive officer. "While it's hard to part with a long-standing business, we see Evonik as an excellent strategic fit for our silica customers and employees."
The silica market is characterized by its variety of applications and shows above-average annual growth of 4 to 6 percent.
The transaction is scheduled to be completed in the second half of 2017, subject to approval by the responsible authorities. The acquisition is likely to have a positive impact on Evonik's earnings per share from the first full year. The financing has been secured through Evonik's own funds and committed credit facilities.
