Company News, Financial News

Air Products To Exit Specialties?

Evonik said to be a potential suitor.


By: Tom Branna

Air Products To Exit Specialties?

Is the air out of chemical specialties' sales for Air Products? Industrial gas producer Air Products and Chemicals Inc is said to be in advanced talks to sell its performance materials operations to Evonik Industries AG.

The business, which makes chemicals used in sun lotion and paint, could be valued at more than $3.5 billion, according to the source. Evonik has been on the lookout for larger acquisitions but has so far failed to clinch a deal that could bolster its growth and make it less dependent on its animal feed business. Air Products and Chemicals Inc, based in Pennsylvania, said last year that it planned to spin off its materials technologies business into a publicly traded company.

A separate source told Reuters on Thursday that Evonik was interested in Air Products' business but that no decision had been made yet whether to pursue a deal. Air Products said its material technologies business had sales of $2.087 billion in 2015, out of group total of USD 9.895 billion.

Evonik declined to comment on the matter.

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