Deal to close by year-end
Porocel regenerates process catalysts for fuels
Evonik pays 9.1 times 2019 adj. EBITDA
Adds details on technology
Aug 26 (Reuters) - German chemicals group Evonik Industries EVKn.DE said on Wednesday it agreed to buy U.S. group Porocel for $210 million to accelerate growth at its catalyst business.
The deal, which Evonik expects to finalise by the end of 2020, would give Evonik access to regeneration of desulphurisation catalysts, and also to additional production capacities for its own catalysts, the company said.
Porocel owns a technology to rejuvenate used desulphurisation catalysts, which are chemicals that are needed to make low-sulphur fuels.
Evonik said that the rejuvenation process causes less than half the carbon dioxide emissions that are associated with the production of new desulfurisation catalysts.
The purchase price amounts to 9.1 times the target's annual adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA), Evonik said.
(Reporting by Bartosz Dabrowski and Ludwig Burger in Frankfurt, editing by Emma Thomasson )
((bartosz.dabrowski@thomsonreuters.com; +48 587720995;))
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