Evonik has announced that it is acquiring the Porocel Group for US$210 million to accelerate the growth of its catalysts business.
Based in Houston, Texas, US, Porocel offers a technology for highly efficient rejuvenation of desulfurisation catalysts, which are in increasing demand to produce low-sulfur fuel. Rejuvenation reduces carbon dioxide emissions by more than 50% compared with the production of new desulfurisation catalysts. In addition, Porocel has available production capacity, enabling Evonik to speed up expansion of its existing business with fixed-bed catalysts.
“This acquisition is the next logical step in the strategic development of our portfolio. Our focus is on stable and high-margin specialty chemicals,” said Christian Kullmann, Chairman of the executive board. “We are systematically expanding the share of our specialty businesses – and that at an attractive valuation.”
The transaction is expected to close by the end of 2020 and is subject to approval by the relevant authorities.
In a statement, Evonik said that the worldwide presence of its catalyst activities will be strengthened by Porocel’s global position. Evonik expects to increase sales of the combined catalyst business to significantly more than €500 million by the end of 2025 without the need for investment in new capacities.
“Sustainability and especially circular economy play a decisive role for us when it comes to acquisitions and the orientation of our portfolio,” said Claus Rettig, Head of the Smart Materials division. “With the acquisition of Porocel we are meeting increasing demand that is coming from a trend towards sulfur-free fuels as well as reducing CO2 emissions and saving resources. The catalyst rejuvenation process results in significantly less CO2 emissions than the manufacture of fresh catalysts, while yielding comparable efficiency and at a much lower cost.”
The acquisition gives Evonik access to major customers in the refinery and petrochemicals sector. Porocel's core competence is an efficient technology for purification adsorbents, sulfur recovery catalysts and hydroprocessing services highlighted by rejuvenation of used desulfurisation catalysts.
“Our innovation power driven by the talented team at Porocel is well suited to Evonik’s culture and we look forward to grow the business further together,” said Terence McHugh, President and Chief Operating Officer of Porocel.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/27082020/evonik-acquires-porocel/
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