Clariant's Pigments Business Has Been Sold

Clariant's Pigments Business Sale Completed The sale of Clariant's Pigments business to a consortium comprising Heubach Group ("Heubach") and SK Capital Partners ("SK Capital") has been completed. Under the terms of the agreement, the base enterprise value of the sale is CHF 805 million, before closing account adjustments and a potential earn-out payment of CHF 50 million based on the company's financial performance in 2021. Clariant, Heubach and SK Capital rolled over approximately CHF 115 million to retain a 20% stake in the new holding company. With approximately 3,000 employees and annual sales of almost EUR 1 billion, the combined entity is a global pigments player with strong service and production capabilities worldwide. Through the combination with Heubach's Pigments business, Clariant will benefit further from improved profitability in the Pigments segment, participate in future growth prospects, and realize synergies. Clariant's net cash inflow is approximately CHF 615 million after roll-over and initial debt adjustments, but before closing account adjustments, taxes, transaction costs, and a potential earn-out payment. Clariant plans to deploy the sale proceeds in growth projects within its core Business Areas, implement the sustainability and innovation strategy, support performance improvement programs, and strengthen Clariant's balance sheet to achieve and maintain a solid investment grade rating. "The Pigments divestment concludes Clariant's transformation into a high-value specialty chemicals company, enabling us to invest in profitable growth in our most attractive segments and to address rising 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 for the Pigments operations and wish our former colleagues success in their new environment. Clariant looks forward to participating in the group's continued development as a shareholder." Source