Evonik has announced that it will not put its performance materials business up for sale, according to a report published by Reuters. CEO Klaus Engel told analysts on a conference call that a sale was no longer ‘on the agenda’.

The specialty chemicals giant has agreed to purchase the specialty and coating additives arms of US-based Air Products for US$3.8 billion.

The deal is one of the largest in Evonik’s history, and values the two units at 15.2 times expected EBIDTA for 2016, adding ingredients for insulation foams, sun lotions and paint to Evonik’s portfolio.

Klaus Engel, CEO of Evonik, said, “Evonik is already one of the leading producers of specialty and coating additives. Air Products’ Specialty and Coating Additives business perfectly complements this fast-growing segment. With this acquisition we are expanding our portfolio with precisely the right markets, products and innovations and continuing to invest in our growth and profitability.” 

Air Products is said to be planning to list its remaining Material Technologies unit, renamed Versum Materials.