Evonik sells Degussa Carbon Black unit to Rhone Capital

In a move intended to give it a more “clear-cut” profile, specialty chemical maker Evonik Industries AG has agreed to sell its Degussa Carbon Black business to New York City-based venture capital firm Rhone Capital LLC for 900 million euros (Cdn$1.2 billion).

Carbon Black is being acquired intact as a whole, Evonik said, with its 1,650 employees, about 500 of whom are based in Germany.

As a product, carbon black is used in the rubber and tire industries and as pigment black preparations in coatings, plastics, inks, and toners, among other goods.

“With the sale of our carbon black activities to Rhone Capital, we believe that their further development potential is highly promising,” said Klaus Engel, chairman of the Executive Board of Germany-based Evonik. “This represents another major step toward a more clear-cut profile for Evonik as a leading specialty chemicals company when it goes public,”

Degussa reported sales revenues of 1.2 billion euros in 2010.