BERLIN (dpa-AFX) - Evonik Industries AG acquires the Silica business of the US company J.M. Huber for $630 million.
For the 2016 financial year, Huber Silica is expected to achieve sales of close to 300 million US dollars and an EBITDA of $60 million. This corresponds to an attractive EBITDA margin of more than 20 percent.
For the 2016 financial year, Huber Silica is expected to achieve sales of close to $300 million and an EBITDA of $60 million.
Through the ideal complementarity of the two business areas, Evonik expects to generate synergies of 20 million US dollars, largely in the areas of production, logistics and procurement as well as through harmonization of the product portfolio. We expect to have all synergy measures implemented by 2021.
The depreciations customarily associated with asset deals will lead to lower future cash tax payments with a net present value of around 80 million US dollars. On this basis, the purchase price (enterprise value) including synergies and tax effects is about seven times the annual EBITDA, or 10.5 times before tax effects and synergies.
The transaction is scheduled to be completed in the second half of 2017, subject to approval by the responsible authorities. The acquisition is likely to have a positive impact on Evonik's adjusted earnings per share as early as the first full financial year. Financing has been secured through Evonik's own funds and committed credit facilities.
Copyright RTT News/dpa-AFX