Heavy! Win paid $625 million for Peroxy Chem

Umtron's $625 million acquisition of PeroxyChem
's business to enhance the resource efficiency of the growth segment
expanding hydrogen peroxide's high-margin specialty applications
its strong growth and sound financial position, generating significant free cash flow
100 per cent has signed an agreement with One Equity Partners to buy Peroxy Chem of the United States for $625 million. PeroxyChem is a producer of hydrogen peroxide (H2O2) and peroxyacetic acid (PAA) and is well positioned for high-margin specialty applications.
"s acquisition of Peroxy Chem will significantly enhance the efficiency of our growth sector resources
China
. We are expanding our portfolio of environmentally friendly and high-growth specialty applications. In addition, we will acquire attractive businesses characterized by above-average growth, moderate capital intensity and low cyclicality. "
Created Industrial Group Chairman Kuleman
"We are pleased to work together to win, so that the current successful business to the next level." Together, the two companies will bring new and attractive growth opportunities to our customers and employees. Bruce Lerner, President and CEO of Peroxy Chem, said.
hydrogen peroxide and peroxyacetic acid are widely used and enjoy above-average growth rates, especially in specialty chemicals applications with an average annual market growth rate of up to 6%.
" Peroxy Chem's profitability is impressive. Its adjusted EBITDA margin (EBITDAmargin) is approximately 20% and profitability continues to be higher than Ingtron's current level. Its strong business growth and sound financial position result in significant free cash flow.
- Ute Wolf
Peroxy Chem, Ingtroin's chief financial officer, is headquartered in the United States, and its hydrogen peroxide and peroxyacetic acid businesses focus on more sophisticated and less cyclical markets such as environmental protection, food safety and the electronic semiconductor industry. About three-quarters of the company's profits come from specialty applications in these areas.
revenue was about $300 million and adjusted EBITDA was about $60 million. EBITDA margins will remain attractive at around 20%. Through complementary production, logistics, product portfolio strengths and the introduction of new technologies, Win expects the combined global business to generate $20 million in synergies, which will be fully realized by the end of 2022.
acquisition price (enterprise value), including synergies, is approximately 7.8 times the annual adjusted EBITDA, and 10.4 times the annual adjusted EBITDA, regardless of synergies. The transaction is expected to close in mid-2019 with the approval of the relevant authorities.
the acquisition is expected to have a positive impact on 4 2006's adjusted earnings per share and free cash flow in the first full fiscal year after completion. The acquisition funds have been raised through cash and confirmed credit lines.
hydrogen peroxide and peroxyacetic acid are widely used oxidants in the pulp industry as bleach and as disinfectants in the food processing or wastewater treatment industries. Water is the only by-product of hydrogen peroxide reaction and is therefore extremely environmentally friendly.
due to its product attributes, hydrogen peroxide is increasingly being used in high-tech industries such as semiconductor manufacturing, medical applications and aerospace technology. Logistics, long-term customer relationships and diversified end-market applications make this business more adaptable.
100-year history, Peroxy Chem is an innovative manufacturer of hydrogen peroxide and peroxyacetic acid. Headquartered in Philadelphia, Pennsylvania, the company employs about 600 people and has eight production sites worldwide, mainly in North America and production facilities in Germany, Spain and Thailand.
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.