$640 million! Ingtron successfully completed the acquisition of Peroxy Chem. 　　

Ingtroon Industries announced on February 3rd that it had successfully completed its $640 million acquisition of Peroxy Chem in the United States. The D.C. court previously dismissed a blocking lawsuit filed by the U.S. Federal Trade Commission (FTC). "This is a welcome result for Umtron, " said Mr Kuleman, Ingtroon's chairman

. "In its judgment, the Court agreed with our view of the hydrogen peroxide market, in particular the core strengths of the Peroxy Chem portfolio in the specialty applications market. This acquisition presents us with more growth opportunities, especially in the environmentally friendly disinfectant market. 1
2018 signed an agreement with One Equity Partners to acquire Peroxy Chem. PeroxyChem is a producer of hydrogen peroxide (H2O2) and peroxyacetic acid (PAA) and is well positioned for high-margin specialty applications. Antitrust authorities in other countries, except the United States, have approved the deal. But in August 2019, the U.S. Federal Trade Commission filed a lawsuit blocking the acquisition.
, chief executive of Perroxy Chem, said: "Despite the uncertainty in the market, we are still strong in 2019. The company's sales and earnings grew further in a challenging economic environment. The integration of the two companies will motivate employees to develop better solutions for their customers.
PeroxyChem's sales reached approximately $300 million in 2019, and adjusted EBITDA exceeded $64 million (2018 sales of approximately $300 million and adjusted EBITDA of approximately $60 million). 2019 has also seen good growth in Ingtrous's peroxide business. In recent years, Umtron's continued strategic focus on specialty chemicals has led to positive growth in its peroxide business, with revenues rising, particularly as its 2019 EBITDA margin is fully in line with the company's overall target range of 18% to 20%.
peroxyChem's plant in Prince George's, British Columbia, Canada, will be sold in due course to meet antitrust requirements. The plant mainly produces standard hydrogen peroxide products. For Peroxy Chem and Win, the plant's revenue as a percentage of the company's overall revenue is negligible.
"Ukip's financial position improved further last year by divesting its methyl acrylic business," said Ute Wolf, Ukip's chief financial officer. "According to the plan, we will use some of the proceeds to selectively expand some of our high-margin, low-cyclical, high-ratio specialty products and strong free cash flow."
sustainable development trend, the hydrogen peroxide and peroxyacetic acid market is currently developing well. Hydrogen peroxide is an environmentally friendly and resource-efficient chemical. Hydrogen peroxide has become one of the purest and most versatile chemicals due to its decomposition into hydrogen and water during processing. Sustainable disinfectants are a major application area driving demand growth. PeroxyChem's hydrogen peroxide and peroxyacetic acid businesses focus on end-users in the less cyclical environmental protection, food safety and electronic semiconductor industries.
this background, PeroxyChem built a wastewater treatment plant with oxyacetic acid in Memphis, Tennessee, USA in 2019. Based on a long-term supply agreement with the city of Memphis, the plant will begin generating steady revenue in 2020. The plant's capital expenditure has been fully borne by Peroxy Chem. Under the terms of the contract, the acquisition price was increased to $640 million from the originally announced $625 million, given the successful completion and timely implementation of the project.
Given the complementarity of the two companies' global operations, Ingtron expects the combined global business to generate $20 million in synergies, the same as previously reported figures, particularly in operations and logistics, product portfolio expansion and new technology development. These synergies will be fully realized by the end of 2022.
based on our 2019 financial results, the acquisition price (corporate value), including synergies, is approximately 7.6 times the annual adjusted EBITDA and 9.9 times the annual adjusted EBITDA, regardless of synergies. The acquisition will have a positive impact on Profitable's adjusted earnings per share and free cash flow for fiscal 2020. The transaction is completed on February 3, 2020. From this date, peroxyChem will be fully into Created.
acquisition business will be included in the Created Resource Efficiency business segment. Integration will begin immediately.
More than 100 years of history, Peroxy Chem is headquartered in Philadelphia, Pennsylvania, USA, with approximately 600 employees and 8 production sites worldwide, mainly in North America and production facilities in Germany, Spain and Thailand. Win is one of the world's largest producers of hydrogen peroxide. Its active oxide line has decades of experience in the production of hydrogen peroxide and its related products, with 13 production sites worldwide.
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