Evonik says preparing diaper materials business for potential sale (updated)

Nippon Shokubai

22/09/2020 16:39

* Analysts expect 400-450 mln euros in proceeds
    * Unit competes with BASF, Nippon Shokubai, Sanyo
    * Carve-out will likely take 6-9 months

 (Adds estimated price tag, background on strategy)
    By Matthias Inverardi
    DUESSELDORF, Germany, Sept 22 (Reuters) - German chemicals
maker Evonik  EVKn.DE  on Tuesday said it would prepare its
superabsorbents business, which makes materials for diapers and
hygiene products, for a possible sale in about six to nine
months.
    After an organisational carve-out, Evonik would put the
business up for sale, seek a partner or restructure it further,
a spokesman told Reuters.
    The division competes with BASF  BASFn.DE , Nippon Shokubai
 4114.T , Sanyo Chemical  4471.T  and LG Chem  051910.KS  and
Evonik has said it is the third-largest supplier of
superabsorbents.
    Analysts at Bernstein Research on Tuesday estimated a sale
could generate 400-450 million euros in proceeds.
    The company has been pursuing deals to boost margins and
growth prospects. Evonik this year wrapped up the $625 million
takeover of PeroxyChem to bolster its bleaching agents business
and in August agreed to buy U.S. process catalyst maker Porocel
for $210 million.
    Last year it agreed to shed its methacrylates plastics unit,
a maker of materials for clear acrylic sheets, for 3 billion
euros.
    Deputy Chief Executive Harald Schwager said in June the
group would consider all strategic options for the absorbent
materials business over the next few years and that the unit was
currently being restructured.  urn:newsml:reuters.com:*:nL8N2E12IS
    It is part of Evonik's Nutrition & Care division, which saw
revenue slip 1% to 4.58 billion euros last year.

 (Reporting by Matthias Inverardi
Writing by Ludwig Burger
Editing by Michelle Adair, Douglas Busvine and David Evans)
 ((ludwig.burger@thomsonreuters.com; +49 69 7565 1311; Reuters
Messaging: ludwig.burger.thomsonreuters.com@reuters.net))