Clariant Agrees to Market Pigments Company in $950 Million Deal | Investing Information

ZURICH (Reuters) -Clariant has agreed to market its pigments business enterprise to Heubach Team and SK Cash Associates in a offer which values the small business at up to 855 million Swiss francs ($951.27 million), the Swiss chemical substances maker reported on Monday.

Clariant claimed it would reinvest to become a 20% shareholder in the new mixed organization, which employs 3,000 people and has yearly product sales of all around 900 million euros ($1.09 billion).

The offer represented an organization benefit of 805 to 855 million francs, relying on an receive-out payment dependent on the 2021 economical functionality of the company which would make pigments and dyes employed in the automotive, plastics and other industries.

Clariant mentioned the sale, which is predicted to be accomplished in the to start with half of 2022, represented a multiple of 10.7 to 11.4 times the standalone EBITDA of the pigments organization in the year to April 2021.

The sale is the remaining stage in the divestment and repositioning programme declared by Basel-primarily based Clariant in July 2018, stated Main Govt Conrad Keijzer.

The business has currently divested its healthcare packaging and masterbatches company as it seeks to increase a lot quicker than its markets, and elevate gain margins.

“Now our concentrate can thoroughly be on rising profits and profitability of our core business parts: Care Chemical compounds, Catalysis and Pure Methods,” Keijzer mentioned.

In addition to funding the reinvestment, proceeds will go into funding organic and natural advancement of Clariant, as effectively as strengthening the firm’s balance sheet.

($1 = .8988 Swiss francs)

(Reporting by John Revill, editing by Silke Koltrowitz)

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