Perstorp 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.
Ingevity will acquire Perstorp UK Ltd including Perstorp’s entire caprolactone business.
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:
Further building leadership in the polyol business;
Expand the markets for phthalate-free plasticizer Pevalen;
Expand the markets for products within the animal nutrition area;
Establishing its pro-environment solutions as the first choice (certified products based on renewable raw materials)
“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," Perstorp president and CEO Jan Secher said.
“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," added Michael Wilson, Ingevity president and CEO.
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.