German chemicals company Evonik confirmed it reached a deal to sell a business that makes clear acrylic sheets to private equity group Advent International.

The deal values the unit at €3bn including debt.

Evonik was aiming to make an announcement with its fourth-quarter financial results on Tuesday morning, according to two people familiar with knowledge of the situation. It brought the news forward after the deal was first reported by the Financial Times, pushing shares 4.9 per cent higher by the close.

Other prospective bidders that were said to be involved in the race for the methacrylates business included private equity firm SK Capital, a consortium of Triton and Rhone Capital, as well as the petrochemicals group Ineos.

Evonik is divesting what is a commodity business as it seeks to narrow its portfolio and focus on more speciality chemicals.

The methacrylates unit is expected to generate €400m in adjusted earnings before interest, tax, depreciation and amortisation for 2018 on sales of €1.9bn, with 3,700 employees across 18 sites. It also includes the acrylics products and CyPlus business lines, as well as some of the methacrylate resins activities.

Its products include the high-volume monomer methyl methacrylate and polymethyl methacrylate (PMMA), which is often used as a shatter-resistant alternative to glass in the automotive, construction and lighting industries and is sold by Evonik under the Plexiglas brand. The German group is the second-largest producer of both substances.

Analysts have forecast group adjusted ebitda of €2.6bn on sales of €15bn in 2018.

Get alerts on Evonik Industries AG when a new story is published

Copyright The Financial Times Limited 2019. All rights reserved.
Reuse this content (opens in new window)

Comments have not been enabled for this article.

Follow the topics in this article