Evonik is Selling Stake In Energy Unit

As part of its strategy to focus on specialty chemicals, Evonik Industries has agreed to sell a 51% interest in its energy business to a consortium of seven German municipal utilities for $850 million. Evonik says the deal should close by the end of March. The utilities plan to purchase the remaining 49% in the coal-based energy business within five years. Proceeds from the transaction will be reinvested in Evonik’s chemical operations, which now account for about 80% of its sales and earnings, the firm says. In 2008, private equity firm CVC Capital Partners bought a 25% stake in Evonik.