Perstorp, a global leader in specialty chemicals, announced today it has agreed to sell Capa™, its caprolactone business, including the production site in Warrington, to Ingevity for approximately €590 million. The business has annual revenues of approximately €150 million.
Under Perstorp’s leadership during the last 10 years, Capa’s operating margins have increased by almost 50% by investing in production and new product lines, which in turn have increased both the customer base and the geographic reach. This has made Capa a highly attractive asset, gaining interest among several potential buyers of which Ingevity now will be the new owner to continue to develop the long-term value of the business. Ingevity will acquire Perstorp UK Ltd including Perstorp’s entire caprolactone business.
The sale of Capa will unlock significant value and is in line with Perstorp’s track record of successful divestments such as most recently the BioFuels Business and in 2017, the Belgian site in Gent.
It will furthermore enable the Perstorp Group to focus its business opportunities and future growth prospects on its Polyol, Oxo and Feed businesses, maximizing opportunities such as;
Jan Secher, President and CEO of Perstorp, commented: “We have a strong track record in delivering optimum value from our businesses. Capa is an excellent proof of this and where the business will continue to have a bright future. This sale realizes the significant value of the asset, simplifies Perstorp Group, strengthens our balance sheet and allows us to focus our future investment and innovation in attractive high growth segments.
Our strategy remains to leverage Perstorp’s superior positions and expertise in chemistry and engineering to drive innovation and provide our customers with solutions that advance everyday life.”
“The Capa business fits Ingevity’s strategy and financial profile and aligns with our business model and capabilities,” said Michael Wilson, Ingevity president and CEO. “Like our current businesses, Capa is a high value-added, specialty chemicals business driven by technology-based customer partnerships and focused on high-growth end-markets. In addition, Capa will increase Ingevity’s product and geographic diversity and offers the potential to grow in related strategically-targeted market segments.
The transaction is subject to certain regulatory approvals and other customary closing conditions, and Perstorp expects to close the transaction in the first quarter of 2019.
HSBC Bank plc acted as financial adviser and Allen & Overy acted as legal counsel to Perstorp.
Perstorp believes in improving everyday life – making it safer, more convenient, more fun and more environmentally sound for millions of people all over the world. As a trusted world industrial leader, our innovations provide essential properties for products used every day at home and work. You’ll find us everywhere from your car and mobile phone to towering wind turbines and the local dairy farm. Simply put, we work to make good products even better.
Perstorp’s focused innovation builds on more than 135 years of experience, representing a complete chain of solutions in organic chemistry, process technology and application development. Manufacturing is based in Asia, Europe and North America, with sales and support in all major markets.
For more information, visit perstorp.com
Perstorp’s recent ownership change
On the 26th of September 2018, Perstorp announced it was transferred a new fund managed by PAI Partners with Landmark Partners as lead investor, alongside other co-investors. In addition to the transfer, Landmark Partners and its co-investors have committed c. EUR 130 million to Perstorp for growth opportunities.
Ingevity provides specialty chemicals and high-performance carbon materials and technologies that purify, protect and enhance the world around us. Through a team of talented and experienced people, Ingevity develops, manufactures and brings to market products and processes that help customers solve complex problems. These products are used in a variety of demanding applications, including asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants, publication inks and automotive components that reduce gasoline vapor emissions. Headquartered in North Charleston, South Carolina, Ingevity operates from 25 locations around the world and employs approximately 1,600 people. The company is traded on the New York Stock Exchange (NYSE: NGVT). For more information visit www.ingevity.com.