Clariant's Pigments Business Has Been Sold
Clariant’ Pigments business sale to a consortium of Heubach Group (“Heubach”) and SK Capital Partners (“SK Capital”) is completed.
According to the terms of the agreement, the sale's base enterprise value is CHF 805 million, before closing accounts adjustments and a potential earn-out payment of CHF 50 million based on the company's financial performance in 2021.
Clariant, along with Heubach and SK Capital, rolled over approximately CHF 115 million to keep a 20% share in the new holding company. With about 3000 workers and annual sales of almost EUR 1 billion, this united company is a global pigments player with strong service and production capabilities around the world. Through the combination with Heubach's Pigments company, Clariant will be able to benefit even more from the Pigments business's improved profitability, participate in future growth prospects, and realize synergies.
Clariant's net cash inflow is roughly CHF 615 million after roll-over and initial debt adjustments, but before closure account adjustments, tax, transaction cost, and a potential earn-out payment. Clariant plans to spend the proceeds of the sale in growth projects within the core Business Areas, implement the sustainability and innovation strategy, support performance improvement programs, and enhance Clariant's financial sheet in order to achieve and maintain a good investment grade.
“The Pigments divestment concludes Clariant’s transformation into a high-value specialty chemical company, allows us to invest in profitable growth in our most attractive segments and to address the increasing demand for more sustainable products,” said Conrad Keijzer, Chief Executive Officer of Clariant. “We are convinced that the Heubach and SK Capital consortium is the best owner of the Pigment activities and I wish our former colleagues all the best in their new environment. Clariant looks forward to participating in the group’s further development as a shareholder.”
Kaynak
