The company plans to sell its methyl acrylate business
- Mar 06, 2019-
The German chemicals company winner has announced an agreement to sell its methyl acrylate business to Advent International(Boston) for 3 billion euros ($3.4 billion) at 8.5 times its EBITDA.The deal, which is subject to approval by authorities in several countries, is expected to close in the third quarter of this year.
The company has 18 manufacturing sites and 3,900 employees worldwide.From 2016 to 2018, the average annual generated EBITDA of about 350 million euros ($397 million) and annual sales of about 1.8 billion euros ($2 billion).Wintek expects sales and EBITDA to reach similar levels in 2019.
The deal includes methacrylate, acrylic products and the CyPlus business line, as well as some methacrylate resin businesses.Wintek said bringing the businesses to market was part of a systematic strategy to increase its focus on the specialty chemicals business.Specialty chemicals are a less cyclical business.Advent International, a private equity firm, is one of the financial investors with extensive experience in the global chemical industry *, having made more than 30 investments in the past 30 years, according to the company's press release.
The net purchase price (the value of the shares) is calculated after deducting about 500 million euros in pensions.Wintek will use the proceeds to strengthen its balance sheet, particularly for targeted growth projects.That includes funding the acquisition of PeroxyChem of the us, which wintek plans to close this year.In addition, some of the funds will be used to strengthen the current special chemicals portfolio, such as the construction of a new PA12 plant in marr, Germany