PMD generated $1.04 billion in revenue for the 12 months ending March 31, 2016. PMD’s business includes a specialty additives businesses, which accounted for approximately 28% of rvenues. PMD has approximately 1,100 employees and includes major production facilities in the U.S., Germany, the United Kingdom, China and Japan. PMD products provide distinct, performance-enhancing benefits in use across the construction, marine, automotive, industrial cleaning and other markets.
Air Products’ Specialty & Coating Additives business can be rapidly integrated into the growth segments Nutrition & Care and Resource Efficiency, said Evonik.
According to Evonik, with their products and their strong positions in the key global markets, Evonik and the newly acquired business are highly complementary. Their specialty and coating additives add critical and highly valuable characteristics to their customers’ products. The two businesses serve three particularly attractive, rapidly growing core markets: coating and adhesive additives, high-value PU foam additives, and specialty surfactants for industrial and institutional cleaning. They target the same end customers, but with different and complementary products, said Evonik.
Further, Evonik said it and the acquired division also complement each other on a geographical basis. While the focus of the Air Products’ business is on North America and Asia, Evonik is particularly strong in Europe. With the current acquisition, Evonik is crucially boosting its standing in the North American market, allowing it to serve the increasingly global activities of its customers even more effectively. At the same time, by growing in North America and Asia, Evonik is reducing its dependence on the European market and therefore better protecting its own business against economic fluctuations in individual regions.
Evonik intends to continue to run PMD from Allentown, PA.
The sale of PMD is expected to close before the end of 2016, and is subject to regulatory approvals and customary closing conditions. Under the terms of the agreement, operational facilities, supplier contracts, labs, contracts, customers, and employees and certain legal entities associated with PMD would transfer to Evonik.
Air Products intends to spin-off its Electronic Materials Division (EMD) to shareholders as a separate public company.