Evonik Industries expects a rise in 2021 profit and remains on the hunt for acquisitions to help support its focus on specialty chemicals, the German company said on Thursday.

CEO Christian Kullmann said the company would continue to buy and sell businesses to adjust its portfolio.

Evonik is in the middle of a transformation process towards higher margin specialty businesses that has helped it to navigate the COVID-19 crisis so far and that Kullman said should help to generate new growth in 2021 and beyond.

Specialty chemicals businesses make up about 80% of Evonik’s portfolio, up from just 40% in 2010, the company's website said.

Evonik is now preparing the sale of its low-margin superabsorbents business, which makes materials for diapers and hygiene products.

The CEO said the sale of this business, an option as likely as a partnership with another company, was expected to take place by summer.

Evonik deputy chairman Harald Schwager said Evonik's production of lipids for BioNTech and Pfizer's COVID-19 vaccines should start adding to sales from the second half of 2021 and generate revenues at a three-digit million level in the coming years.

Evonik said last month it was investing in the expansion of production of lipids to be used in BioNTech and Pfizer vaccine. 

The group is targeting adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) between 2.0 billion euros and 2.3 billion euros ($2.4-$2.8 billion) for this year, up from 1.91 billion euros reported for 2020.

It forecast sales of 12-14 billion euros after reporting 12.20 billion in 2020.

Fourth-quarter EBITDA, adjusted for one-offs, fell 17% to 418 billion euros ($504 billion), the company said, below an analysts' forecast of 437 billion euros in a company-provided poll.

Evonik said it expected its free cash flow to rise further this year after reporting 780 million euros for 2020.

Evonik shares were down 1.7% by 1120 GMT, broadly in line with the German mid-cap index. They have risen 7.4% so far this year, outperforming German rival Lanxess and Dutch rival DSM, but lagging behind Germany's BASF.

($1 = 0.8295 euros)

(Reporting by Bartosz Dabrowski in Gdansk Additional reporting by Zuzanna Szymanska in Gdansk Editing by Tomasz Janowski and Jane Merriman) ((bartosz.dabrowski@thomsonreuters.com; +48 587696560;))