Evonik to Acquire J.M Huber Corporation’s Silica Business

Germany: Evonik Industries AG, a German specialty chemicals company has agreed to acquire the silica business of J.M Huber for USD630 million by the second half of 2017. The transaction involves the deal of Huber’s silica business in North America, Europe, and Asia. Evonik used its funds and credit facilities for financing for the deal. Huber’s silica business is expected to attain sales of around USD300 million and EBITDA of USD60 million. Through this acquisition, the company is expected to generate USD20 million worth synergies and is expected to expand its silica business majorly in Asian countries such as India.

TechSci Research depicts that with this agreement, the company will broaden its portfolio of silica business as Huber’s silica business majorly serves the consumer goods and dental sectors and would also cater the industrial silica business of the company. However, this would stimulate the growth and augment the footprint of the company in the silica market in different regions across the globe.

According to the recently published report by TechSci Research, “Global Tire Chemicals Market By Type, By Tire Category, By Region, Competition Forecast & Opportunities, 2011-2025”, the tire chemicals market is projected to surpass 42.58 million tons by 2025, on account of accelerating demand for highly durable tires majorly by passenger cars, medium & heavy commercial vehicle and OTR tires segment. Tire chemicals are of various types such as, natural rubber, synthetic rubber, accelerators, plasticizers, stearic acid, etc. Moreover, Natural rubber and synthetic rubber were the two leading tire chemicals in global tire chemicals market in 2015, and this trend is expected to continue through 2025, as natural rubber and synthetic rubber accounts for more than 50% consumption in global tire industry. Moreover, global tire chemicals market has been segmented demand in the basis of tire category, which was dominated by passenger cars 2015 and the same trend is anticipated to continue through 2025, owing to rising production and sales of passenger car across the globe.