Clariant agrees to sell pigments company in $950 million offer

ZURICH (Reuters) -Clariant has agreed to promote its pigments business to Heubach Team and SK Money Companions in a offer which values the small business at up to 855 million Swiss francs ($951.27 million), the Swiss chemicals maker explained on Monday.

Clariant stated it would reinvest to come to be a 20% shareholder in the new combined business enterprise, which employs 3,000 individuals and has yearly sales of about 900 million euros ($1.09 billion).

The deal represented an company benefit of 805 to 855 million francs, relying on an get paid-out payment based on the 2021 monetary overall performance of the enterprise which tends to make pigments and dyes made use of in the automotive, plastics and other industries.

Clariant explained the sale, which is expected to be completed in the very first 50 percent of 2022, represented a a number of of 10.7 to 11.4 instances the standalone EBITDA of the pigments business enterprise in the 12 months to April 2021.

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

The business has now divested its health care packaging and masterbatches organization as it seeks to improve more rapidly than its marketplaces, and elevate profit margins.

“Now our concentration can thoroughly be on rising profits and profitability of our main company locations: Treatment Chemical compounds, Catalysis and Purely natural Methods,” Keijzer stated.

In addition to funding the reinvestment, proceeds will go into funding natural development of Clariant, as very well as strengthening the firm’s harmony sheet.

($1 = .8988 Swiss francs)

($1 = .8264 euros)

(Reporting by John Revill, enhancing by Silke Koltrowitz)