Evonik has announced that it is selling its site in Lülsdorf, Germany, as well as the associated cyanuric chloride business in Wesseling, Germany, to International Chemical Investors Group (ICIG).
The parties have agreed not to disclose the purchase price.
Lülsdorf is a substantial part of the Functional Solutions business line within Evonik’s Performance Materials division. Transfer of ownership is scheduled for mid-2023. The closing of the transaction is subject to antitrust clearance and approval by the competent Evonik committees.
ICIG is an established Luxembourg-based chemicals investor. The company has approximately 4800 employees and generated sales of around €4 billion last year. It has extensive expertise in the development of sites and business units that no longer are part of the core business of other enterprises.
Christian Kullmann, Chairman of Evonik’s Executive Board, said: “We wanted a reliable investor that is able and willing to leverage Lülsdorf’s potential effectively, and that is what ICIG offers. For Evonik, that means: we are taking the first step in the planned disposal of the three businesses in our Performance Materials division. For the site, its employees, and the town of Niederkassel, the sale provides excellent options for future development.”
ICIG is taking over the entire site in Niederkassel-Lülsdorf (near Cologne) and the associated cyanuric chloride business in neighboring Wesseling, including more than 600 employees and all production plants. ICIG already has subsidiaries operating in chlorine chemistry and specialty chemicals and wants to expand the businesses in Lülsdorf and Wesseling.
Dr. Achim Riemann, Managing Director of ICIG, said: “We are delighted to be adding these attractive sites to our portfolio and are planning extensive investments. The existing businesses are an excellent strategic fit with our focus.”
In conjunction with the divestment of this site, Evonik is realigning the three businesses of the Functional Solutions business line. With this sale, Evonik will completely divest the production of potassium derivatives and cyanuric chloride, which takes place exclusively in Lülsdorf and Wesseling. As planned, Evonik is retaining the business with alkoxides for biodiesel, which are produced at two further sites apart from Lülsdorf. This business was integrated into the Catalysts business line in the Smart Materials division effective 1 January 2023. ICIG will produce alkoxides at the Lülsdorf site exclusively for Evonik until 2027. In total, the businesses to be divested generated sales of around €260 million in 2022.