Air Products To Sell Performance Materials Business For $3.8 Billion, Spin Off Electronic Materials Division

Air Products & Chemicals Inc. said Friday it has agreed to sell the performance materials division of its materials technologies unit for $3.8 billion in cash to Germany's Evonik Industries AG . The sale is expected to close by the end of the year. The Wall Street Journal reported in March that Air Products was in talks to sell the division, which makes chemicals used in sun lotion to Evonik, in a deal that could be valued at more than $3.5 billion. Air Products said it plans to spin off its electronic materials division to shareholders as a separate public company, named Versum Materials. The spinoff is expected to occur by the end of September. The company said the moves are part of its plan to focus on industrial gases. The stock, which gained 2.3% in light premarket trade, has run up 10% year to date through Thursday, while the S&P 500 has gained 0.3%.