Perstorp has agreed to sell its caprolactone business Capa to Ingevity for about 590 million euros. The deal includes Warrington's production site. The transaction is expected to close in the first quarter of 2019.
Over the past 10 years, under Perstorp's leadership, Capa's operating profit has increased by nearly 50% by investing in production and new product lines, which in turn has increased the customer base and geographic reach. This makes Capa an extremely attractive asset, winning interest among several potential buyers, and Ingevity is now the new owner who continues to develop the long-term value of the business. Ingevity will acquire Perstorp UK Ltd, including Perstorp's caprolactam business.
Capa's sales will unlock tremendous value and are consistent with Perstorp's track record of successful divestments, such as the latest biofuel business and the 2017 Gent website in Belgium.
It will also enable the Perstorp Group to focus business opportunities and future growth prospects on polyols, oxycarbonyl and feed businesses, maximizing opportunities such as these;
Further build leadership in the polyol business
Expansion of the market for phthalate-free plasticizer Pevalen ™
Expanding product markets in animal nutrition
Established its environmental solution as the first choice (certified products based on renewable raw materials)
Perstorp CEO and President Jan Secher said, "CAPA is a good proof that its business will continue to have a bright future. This sale realized the significant value of the assets, streamlined the Perstorp Group, and strengthened our assets. Balance sheet and allows us to focus future investments and innovations in attractive high-growth areas. Our strategy remains to leverage Perstorp's strengths and expertise in chemistry and engineering to drive innovation and serve our customers Provide solutions that advance everyday life. "
"The Capa business is in line with Ingevity's strategic and financial profile and matches our business model and capabilities. Like our current business, Capa is a high value-added, specialty chemicals business driven by technology-based customer partnership Focus on high-growth end markets. In addition, Capa will increase Ingevity's product and geographic diversity and provide growth potential in relevant strategic target market segments, "added Ingevity President and CEO Michael Wilson.
HSBC Bank acted as financial advisor and Allen & Overy served as legal counsel to Perstorp.