CLEVELAND, Dec. 15, 2016 /PRNewswire/ -- Germany-based Evonik recently announced the acquisition of one of its competitors: the silica business of JM Huber. The price tag of the deal comes in at $630 million, the latest in a string of acquisitions this year by the chemicals giant, which includes the $3.8 billion purchase of Air Products & Chemicals' performance-materials division and that of French biotech firm Alkion Biopharma. The latest move is part of Evonik's corporate strategy to deploy cash on targeted acquisitions, ultimately to increase its size and margins.
In March of 2016, Evonik CEO Klaus Engel noted the ease with which companies could obtain funds for financing, fueling merger and acquisition activity across industries. Bloomberg also notes that Solvay's 2015 acquisition of aerospace composites manufacturer Cytec was an effort to move out of commodity chemicals into higher-margin specialty chemicals, which is also one of Evonik's goals. There article can be read here: https://www.bloomberg.com/news/articles/2016-05-06/evonik-said-near-3-5-billion-acquisition-of-air-products-units.
Evonik anticipates growth in the silicas market of 4-6% per year, besting the chemicals sector overall. Freedonia analyst Larry Catsonis agrees, pegging growth for precipitated silica in the US at around 5% per year through 2019. "JM Huber's silica division, with its focus on dental and other consumer products, is a good complement for Evonik's more industrial-focused applications in tires and coatings," notes Catsonis.
Cosmetics and toiletries, which includes dental products like JM Huber's Zeodent line of products, represent the second largest market for specialty silicas. Leading toothpaste manufacturers now generally offer a number of toothpastes and gels featuring silica that are designed to whiten teeth, according to Catsonis. However, the most exciting developments in the silica industry are in the large tire rubber market, where silica is added to tires to increase fuel efficiency.
To find out more about silicas and view the Specialty Silicas study, follow this link: http://www.freedoniagroup.com/industry-study/specialty-silicas-3368.htm.
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, market share information and profiles of the leading industry players. Reports can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group