Perstorp sell caprolactone business Ingevity €590 mn

Perstorp to sell caprolactone business to Ingevity for €590 mn

11:50 AM, 10th December 2018
Perstorp to sell Capa to Ingevity.

MALMO, SWEDEN: Perstorp has agreed to sell its caprolactone business, Capa to Ingevity, for approximately €590 million. The deal includes the production site in Warrington. The transaction is expected to close the transaction in the first quarter of 2019.

Under Perstorp’s leadership during the last 10 years, Capa’s operating margins have increased by almost 50 percent by investing in production and new product lines, which in turn have increased both the customer base and the geographic reach. This has made Capa a highly attractive asset, gaining interest among several potential buyers of which Ingevity now will be the new owner to continue to develop the long-term value of the business. Ingevity will acquire Perstorp UK Ltd including Perstorp’s entire caprolactone business.

The sale of Capa will unlock significant value and is in line with Perstorp’s track record of successful divestments such as most recently the BioFuels Business and in 2017, the Belgian site in Gent.

It will furthermore enable the Perstorp Group to focus its business opportunities and future growth prospects on its Polyol, Oxo and Feed businesses, maximizing opportunities such as;

  • further building leadership in the polyol business
  • expand the markets for phthalate free plasticizer Pevalen™
  • expand the markets for products within the animal nutrition area
  • establishing its pro-environment solutions as the first choice (certified products based on renewable raw materials)

“Capa is an excellent proof of this and where the business will continue to have a bright future. This sale realizes the significant value of the asset, simplifies Perstorp Group, strengthens our balance sheet and allows us to focus our future investment and innovation in attractive high growth segments. Our strategy remains to leverage Perstorp’s superior positions and expertise in chemistry and engineering to drive innovation and provide our customers with solutions that advance everyday life,” said Jan Secher, President and CEO of Perstorp.

“The Capa business fits Ingevity’s strategy and financial profile and aligns with our business model and capabilities. Like our current businesses, Capa is a high value-added, specialty chemicals business driven by technology-based customer partnerships and focused on high-growth end-markets. In addition, Capa will increase Ingevity’s product and geographic diversity and offers the potential to grow in related strategically-targeted market segments,” added Michael Wilson, Ingevity president and CEO.

HSBC Bank plc acted as financial adviser and Allen & Overy acted as legal counsel to Perstorp.

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