Chemical
Arkema to divest its epoxides business to Cargill for $38.8 million
The deal is expected to close in the fourth quarter of 2021
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By ICN Bureau | September 28, 2021
Arkema announces the proposed divestment of its epoxides business to Cargill, a leader in agricultural products and services. With this project, Arkema is pursuing the repositioning of its portfolio on its core businesses.
Arkema produces bio-based and specialty epoxides in Blooming Prairie (MN, USA), used as additives or intermediates in the manufacture of lubricants, plastic additives and a wide variety of other applications. Part of Arkema’s Hydrogen Peroxide activity, this business has limited integration with the rest of the Group’s portfolio, generates sales of around US $40 million and employs approximately 45 people.
By joining Cargill, a global player in bio-based-products, this business of high quality products will benefit from the size and the development strategy of this US Group that will offer new growth potential in the industrial markets.
The offer received values this activity at US $38.8 million, which is around 10 times historical EBITDA.
The deal is expected to close in the fourth quarter of 2021.
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