German specialty chemicals company Evonik Industries AG has signed an agreement with U.S. One Equity Partners, a private merchant banking arm of JPMorgan Chase, to acquire chemical manufacturing company PeroxyChem LLC for $625 million.

Evonik said that PeroxyChem will significantly strengthen its growth segment Resource Efficiency.

PeroxyChem said that the complementary fit of the two businesses will unlock new and attractive growth opportunities for its customers and employees.

Evonik expects synergies across the combined global business of $20 million due to the complementary fit in operations, logistics, expansion of the product portfolio and launch of new technologies. Synergies should be fully realized by 2022.