Clariant Completes Sale of Pigments Business Unit
Clariant Completes Sale of Pigments Business Unit
Clariant, a focused, sustainable and innovative specialty chemicals company, has completed the sale of its Pigments business unit to a consortium of Heubach Group ("Heubach") and SK Capital Partners ("SK Capital").
As announced upon signing of the transaction, the base enterprise value of the sale is CHF 805 million, subject to closing account adjustments and prior to a potential earn-out payment of CHF 50 million tied to the business's 2021 financial performance.
In addition to Heubach and SK Capital, Clariant transferred approximately CHF 115 million to retain a 20% stake in the new holding company. This combined business has become a global pigments player with approximately 3,000 employees generating annual sales of roughly EUR 1 billion and strong service and manufacturing capabilities worldwide. This transaction enables Clariant to benefit further from the increasing profitability of its Pigments business, participate in future growth opportunities, and realize synergies through combination with Heubach's pigments operations.
Following the transaction and initial debt repayment, but prior to closing account adjustments, taxes, transaction costs and potential earn-out payment, Clariant's net cash inflow is approximately CHF 615 million. Clariant intends to use the proceeds from this transaction to invest in growth projects within its core business areas, advance its strategy alongside sustainability and innovation, finance performance improvement programs, and strengthen its balance sheet to achieve and maintain a solid investment grade rating.
"Clariant looks forward to participating as a shareholder in the group's further development"
Clariant Chief Executive Officer Conrad Keijzer said, "The sale of our Pigments business unit completes Clariant's transformation into a high-value specialty chemicals company, enabling us to invest in profitable growth in our most attractive segments and address rising demand for more sustainable products. We believe the Heubach and SK Capital consortium is the best owner for the Pigments operations and wish our former colleagues all the best in their new environment. Clariant looks forward to participating as a shareholder in the group's further development."
