Evonik sells Degussa unit to Rhone Capital

ERJ staff report (DS)

Essen, Germany -- Evonik Industries has agreed to sell its carbon black activities to US venture capital company, Rhone Group for a sum in excess of euro 900 million. The carbon black business was previously known as Degussa.

Evonik issued a statement saying, "On April 16, 2011, Evonik Industries signed an agreement with affiliates of Rhône Capital LLC to sell its carbon black business, which achieved sales revenues of some euro 1.2 billion in 2010. The transaction is valued in excess of euro 900 million including the assumption of certain obligations. Thus, Evonik continues to focus systematically on its core chemical businesses. The closing is subject to approval by Evonik's Supervisory Board and competent antitrust authorities, and is expected during summer 2011."

The statement continued, "We are putting the business in good hands. The transaction is good for Evonik, the future of the carbon black business, and its employees."

Rhône Capital commented: "We are proud to succeed Evonik in stewardship of the Carbon Black franchise. We look forward to building on the foundation of Carbon Black's globally acclaimed technology platform, valued customer relationships and skilled workforce, to support Carbon Black's continued worldwide growth."

Carbon Black is being acquired intact as a whole, with its 1,650 employees, about 500 of whom are based in Germany.

After carefully analysing its strategic options, Evonik's Executive Board decided in early September of 2010 to exit the carbon black business entirely. The sale process commenced in November 2010.

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Press release from Evonik

Evonik to sell Carbon Black to Rhône Capital FT (UK / Germany)