MALMÖ, Sweden – Specialty chemicals provider Perstorp has agreed to sell Capa™, its caprolactone business, including the production site in Warrington, UK, to Ingevity, a specialty chemicals company located in North Charleston, North Carolina, for approximately €590 million. The business has annual revenues of approximately €150 million. Ingevity will acquire Perstorp UK Ltd. including Perstorp’s entire caprolactone business.

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.

The sale of Capa will enable the Perstorp Group to focus its business opportunities and future growth prospects on its Polyol, Oxo and Feed businesses.

Jan Secher, President and CEO of Perstorp, commented, “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. This sale realizes the significant value of the asset, simplifies Perstorp Group, strengthens our balance sheet and allows us to focus our future investment and innovation in attractive high-growth segments. Our strategy remains to leverage Perstorp’s superior positions and expertise in chemistry and engineering to drive innovation and provide our customers with solutions that advance everyday life.”

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.