Evonik Sells US Betaines Business

As part of its portfolio transformation, Evonik is divesting its US betaine business. On July 28, the company signed an agreement to sell its whole betaines business in Hopewell, VA—inclusive staff and part of the site—to specialty chemicals company Kensing LLC.

Betaines are amphoteric surfactants, which are used as ingredients in the formulation of shampoos, hair conditioners and skin care products for the personal care industry and in a wide range of other consumer applications.

Evonik’s divestment marks the next stage of the transformation of Evonik’s Care Solutions business line to become a “system solutions” provider for the personal care and cleaning industries, the company said. System solutions, according to Evonik, are multi-component offerings across products, technologies and services that are tailored to a unique customer need and often have proven sustainability benefits.

The Care Solutions business line is a cornerstone of Evonik’s growing life sciences division, Nutrition & Care, which aims to increase its share of System Solutions from 20%  today to more than 50% by 2030. This goal supports the transformation of the whole company to make sustainability the central driver of innovation as “Next Generation” Evonik.

“Betaines are an attractive and profitable business, but they are no longer core to Care Solutions’ strategy, which is driven by high-value-added system solutions. We are convinced, with the new ownership under Kensing, the business will be in good hands for the North plant employees of Evonik,” said Yann d'Hervé, head of Evonik’s Care Solutions business line.

Kensing, LLC, based in Kankakee, IL, is a manufacturer of natural vitamin E, plant sterols, specialty esters and high-purity anionic surfactants, and a portfolio company of One Rock Capital Partners, LLC.

“The amphoteric surfactants and specialty esters manufacturing operations that Kensing will acquire as a result of this transaction are complementary to our existing product portfolio derived from plant-based feedstocks,” said Serge Rogasik, Chief Executive Officer of Kensing. “Building on our leadership position in high-purity anionic surfactants, by acquiring the Business, we are expanding Kensing’s presence in personal care and home care ingredients to provide our customers with an expanded range of low-detergency product and service offerings.”

Evonik's saidt he portfolio adjustment of the Care Solutions business line will enable further investments and acquisitions of sustainable specialties, especially within the innovation growth field cosmetic solutions.

Evonik divested its betaine business in the UK in 2020 with the sale of the Milton Keynes site. It consolidated its European manufacturing activities to support the transition to specialty technology by closing its site in Granollers, Spain.

Evonik said will continue its betaine businesses in Europe, Asia and Latin America.

The remaining part of the Hopewell facility, which produces additives for polyurethane foam manufacture, agricultural and industrial applications, together with approximately 100 employees, will continue to be an important part of Evonik’s North America region.

The transaction is subject to regulatory approvals and customary closing conditions and is expected to close in the third quarter of 2022.