Sale Price Represents 9.9x Multiple of EBITDA
NEW YORK – FEBRUARY 3, 2020 – One Equity Partners (“OEP”), a leading middle market private equity firm, today announced that it has completed the sale of PeroxyChem, LLC, (“PeroxyChem” or “the Company”), a worldwide manufacturer of peroxygen chemistries, to Evonik Industries AG (FRA: EVK), a publicly traded global specialty chemicals company, for $640 million, or 9.9 times EBITDA before synergies.
PeroxyChem, headquartered in Philadelphia, is an innovative producer of hydrogen peroxide and peracetic acid serving the food safety, electronics, environmental, energy and other industrial end markets. The company currently operates eight production sites in North America, Germany, Spain and Thailand.
“We congratulate everyone at PeroxyChem for transforming the company into a global leader in oxidation solutions for food processing, semiconductor purification and industrial anti-microbial applications,” said David Han, Senior Managing Director of OEP and Chairman of PeroxyChem. “We would like to thank PeroxyChem’s management led by Bruce Lerner for the opportunity to partner with the company and Harold Nidetz and Kevin Boyle, our directors and OEP operating professionals, for their valuable operational and strategic guidance throughout the partnership.”
OEP made significant investments to support PeroxyChem’s growth, including the opening of a new hydrogen peroxide purification plant in Saratoga Springs, N.Y., to serve the electronics market, and its construction of a wastewater treatment facility to serve the City of Memphis, Tenn. In addition, the Company made two strategic acquisitions to grow its food safety and energy segments.
“The expertise and resources OEP brought to PeroxyChem were instrumental in our recent growth and evolution,” said Lerner. “Today, our focus on high-growth, high-margin, and less cyclical end markets has enabled our business to be well-positioned for continued success.”
Barclays is acting as financial advisor to OEP in connection with this transaction and Dechert LLP is serving as legal counsel.
About One Equity Partners
OEP is a middle-market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm builds market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 180 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, and Frankfurt. For more information, please visit www.oneequity.com.
PeroxyChem is a global leader in peroxygen and adjacent chemistries. The company employs approximately 600 people throughout the world, with facilities in North America, Europe and Asia. With an unyielding commitment to safety at its core and backed by an exceptional team, the company prides itself on exemplary customer service, product quality, reliability and technical service. PeroxyChem manufactures high quality products and innovative applications developed as a result of dedication to R&D and superior technical expertise. We supply customized chemistries for electronics, energy, environmental, food safety, pulp, paper, polymer, and other industrial and consumer markets. To learn more, please visit http://www.peroxychem.com.
About Evonik Industries
Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world. In fiscal 2018, the enterprise with more than 32,000 employees generated sales of €13.3 billion and an operating profit (adjusted EBITDA) of €2.15 billion from continuing operations.
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