Evonik Industries Group's $ 3.8 billion acquisition of American Air Products' specialty chemicals and coating additives business (belonging to its functional materials division) has been approved by relevant antitrust authorities, and the integration of all acquisitions is ongoing. After the merger, Evonik's specialty chemicals and coating additives business will significantly strengthen its position in the North American market. The transaction was originally planned to be completed on January 3, 2017.
Yingkai Shi, Chairman of Evonik Industrial Group, said: "The successful completion of the acquisition lays the foundation for the rapid integration of Evonik and Air Products' functional materials division. Profitable growth. "
The transaction is expected to generate synergies of $ 80 million per year, and these benefits will be fully realized by 2020 at the latest. Evonik expects to achieve a synergy of 10 to 20 million Euros in 2017.
The transaction is expected to increase Evonik's earnings per share (EPS) in FY2017. The transaction part is carried out through asset acquisition, which will obtain the tax benefits unique to this transaction method. These benefits have a net present value of more than $ 500 million and are available pro rata in fiscal 2017.