Clariant divests businesses

Clariant plans to sell its Textile Chemicals, Paper Specialties and Emulsions businesses to private investment firm SK Capital, subject to regulatory approvals.

The total consideration is approximately Sfr 502 million, out of which approximately Sfr 460 million will be in cash – equivalent to 6.3 times the estimated full year 2012 recurring EBITDA of those businesses.

Clariant’s growth strategy relies on repositioning its portfolio and to achieve the targets set for 2015 it will now focus on markets with strong growth rates and businesses that have a competitive position, resulting in strong pricing power.

In 2012, the divested businesses will generate an estimated Sfr 1.2 billion in sales, equaling approximately 15% of total group sales, and an estimated EBITDA of CHF 80 million. The three businesses employ around 3,000 employees (14% of total workforce) in 35 countries around the globe.

The divestment has been approved by the boards of both companies and is expected to close by the end of the second quarter of 2013.

“For Clariant the transaction marks a significant milestone in the execution of its profitable growth strategy, after the acquisition of Süd-Chemie in 2011,” said CEO Hariolf Kottmann s. “I am pleased that we are able to execute this divestment faster than originally expected. By the end of 2013, Clariant will be an even more profitable company, generating a majority of sales in non-cyclical growth businesses.”