SABIC building
Swiss-based Clariant reached final agreements to liquidate its pigments business by selling it to a consortium of Heubach Group and SK Capital Partners for a total of $895 million to $951 million.
The deal value will depend on an earn-out payment of $55.6 million based on the 2021 financial performance of the business, the company said in a statement.
Clariant expects to close the deal in H1 2022.
Upon closing the deal, Clariant will reinvest the proceeds to become a 20% shareholder alongside the consortium in the ultimate holding company.
This will allow the company to make greater use of improved profitability for the pigments business resulting from the initiated efficiency program and to participate in future growth opportunities.
The pigments business includes the activities of high-quality organic pigments, pigment preparations, and dyes used in many applications, such as automotive industry, industrial paint and plastics.
In 2020, standalone sales for the business reached $945.5 million.
According to data available on Argaam, Clariant is 31.5% owned by Saudi Basic Industries Corp (SABIC), and its main activity is production, development and distribution of specialized chemicals, including plastics, petrochemical catalysts, refining process, oil and ink purification products and wastewater treatment.
The company also offers applied solutions for construction chemicals, agrochemicals, and others, and owns 80 plants with a total production of 4 million metric tons per year.
Comments
{{DisplayName}}
{{ElapsedTime}}