Evonik pays US$630m for JM Huber silica unit

EVONIK has paid US$630m for the silica business of US firm JM Huber.

Evonik chairman Klaus Engel says that Huber Silica “offers the opportunity to strategically develop Evonik’s portfolio.” Silica, small particles of silicon dioxide, is used a variety of products. Evonik currently largely makes silica for use in industrial sectors such as tyres, and in the paint and coatings industry, although it makes some as flow additives and carriers for the food, cosmetics and pharmaceuticals industries. JM Huber Silica, however, focuses on consumer goods, for example dental products.

“Combining the complementary silica businesses of Evonik and Huber will strengthen an important pillar of our portfolio. Also, Huber Silica is an excellent regional fit with its focus on the US, China and India,” said Christian Kullmann, Evonik’s executive board member for strategy.

Evonik says that it will be able to expand its business in North America and Asia. The silica market as a whole has an annual growth rate of 4–6% and Evonik expects to see a positive impact from the purchase on its earnings after the first full financial year. The transaction is due to be completed in the second half of 2017.

“The silica business has been part of Huber since the 1950s and paved the way for our company’s global expansion into engineered materials. While it is difficult to part with a longstanding business, we see Evonik as an excellent strategic fit for both our silica customers and employees,” said Mike Marberry, Huber president and CEO.