Evonik in talks to buy Air Products’ business unit?
Air Products’ business unit, which makes chemicals used in sun lotion and paint, could be valued at more than USD 3.5 billion.
Industrial gas producer Air Products and Chemicals Inc is in advanced talks to sell its performance materials operations to Germany's Evonik Industries AG, a source familiar with the matter told Reuters.
The business, which makes chemicals used in sun lotion and paint, could be valued at more than USD 3.5 billion, according to the source. Evonik has been on the lookout for larger acquisitions but has so far failed to clinch a deal that could bolster its growth and make it less dependent on its animal feed business. Air Products and Chemicals Inc, based in Pennsylvania, said last year that it planned to spin off its materials technologies business into a publicly traded company.
A separate source told Reuters on Thursday that Evonik was interested in Air Products' business but that no decision had been made yet whether to pursue a deal. Air Products said its material technologies business had sales of USD2.087 billion in 2015, out of group total of USD 9.895 billion.
Evonik declined to comment on the matter.
