Evonik acquisition of Peroxy Chem delayed by FTC lawsuit
Evonik declared it will defend itself against the action of the Federal Trade Commission, which announced it will file a lawsuit seeking to block Evonik’s proposed acquisition of Peroxy Chem.
“It is disappointing that the FTC has taken this step to block the acquisition in the highly competitive hydrogen peroxide industry,” said Christian Kullmann, chairman of the executive board of Evonik. “Peroxy Chem offers products in attractive and high-growth end markets that are complementary to Evonik’s product portfolio. The transaction represents an opportunity for Evonik to expand further into specialty hydrogen peroxide and peracetic acid product, optimise its distribution network, achieve substantial efficiencies, and grow production and sales. We remain optimistic that we will prevail at trial and complete the acquisition.”
Closing not before the end of 2019
At the end of 2018, Evonik signed an agreement with One Equity Partners to acquire Peroxy Chem for 556 million Euro. Evonik was expecting to close the deal by the middle of 2019. However, the FTC lawsuit means that closing will not occur before the end of 2019. “We continue to believe that the complementary fit of the two businesses will unlock new and attractive growth opportunities for our customers and employees,” said Bruce Lerner, President and CEO of Peroxy Chem.
Both companies will defend the transaction against the FTC’s lawsuit and intend to show the court that the FTC’s claims fail to recognise current market dyn amics, in particular the substantial growth of specialty hydrogen peroxide applications that are Peroxy Chem’s focus, and the significant synergies and customer benefits that will arise as a result of transaction. During this time, the companies will continue to operate as business as usual.
