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August 31, 2018
By: Anthony Locicero
Copy Editor, New York Post
Evonik is taking the next step in systematically focusing on specialty chemicals with the divestment of its U.S. Jayhawk site in Galena, Kansas. The site produces precursors for agrochemicals, which are not included in the growth businesses defined by Evonik. “We want to continue growing profitably in the specialty chemicals sector,” Evonik Executive Board Chairman Christian Kullmann said. “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.” Jayhawk’s activities fall under the Agrochemicals & Polymer Additives Business Line in Evonik’s Performance Materials Segment. Under a share deal, funds advised by the international investment firm Permira will acquire the site along with the company and its approximately 120 employees. “We’re looking forward to successfully growing the business in Jayhawk further,” said Sebastian Hoffmann, principal and member of the Industrials Team at Permira. “We already have a high level of expertise in customer-oriented solutions in fine chemicals, for example through the investment of the Permira funds in CABB. A strategic cooperation between Jayhawk and CABB will create a seamless transatlantic product and service offering from which existing and new customers of both companies will benefit.” The sale price is in the high double-digit million-dollar range. The transaction is subject to approval by antitrust authorities in several countries. Caspar Gammelin, head of Evonik’s Performance Materials Segment, sees good prospects for the site under its new owner. “Jayhawk has highly skilled employees, well-developed facilities, and longstanding customer relationships,” Gammelin said. “Under the new owner, these strengths can be leveraged even more effectively. With this sale, we’re paving the way for the intelligent further development of our businesses.”
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