Evonik to Pay $3.8 Billion for Air Product's Performance Materials Unit

By Eyk Henning 

FRANKFURT--Germany's Evonik Industries AG has agreed to buy the performance materials division of Air Products & Chemicals Inc. for $3.8 billion.

Evonik said Friday the deal was expected to generate $80 million in synergies annually, and to be completed by year-end.

The announcement confirms a report by The Wall Street Journal in March that Evonik was in exclusive talks to buy Air Products' performance materials unit, which had sales of $245 million in the quarter ended Dec. 31.

"With this acquisition we are expanding our portfolio with precisely the right markets, products and innovations and continuing to invest in our growth and profitability," said Evonik's Chief Executive Klaus Engel.

Evonik has been vocal about wanting to do a significant deal to gain size and improve margins for some time. Mr. Engel said in March that the company continued to seek a large acquisition.

For Air Products, which has a market value of nearly $30 billion, the transaction is part of a broader overhaul. About seven months ago, the company said it aimed to split into two publicly traded companies.

Write to Eyk Henning at [e-mail]

(END) Dow Jones Newswires

May 06, 2016 08:40 ET (12:40 GMT)

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