Clariant completes the sale of its Pigments business
AD HOC ADVERTISEMENT UNDER ART. 53 LR
- Divestment is a final important step in the transformation of the Clariant portfolio
- clarifying preserves a 20 % stake in the newly formed Group
- Report cash inflows of about CHF 615 mmillions from cession at closing will be invested inat growth within the main areas of activity, the In progress transformation and further debt reduction
MUTENZ, JANUARY 3, 2022
Clariant, a focused, sustainable and innovative specialty chemicals company, today finalized the sale of its Pigments business to a consortium of Heubach Group (âHeubachâ) and SK Capital Partners (âSK Capitalâ). As announced at the signing of the transaction, the basic enterprise value of the sale amounts to CHF 805 million subject to adjustments to the closing accounts and before a possible earn-out of CHF 50 million which is submitted. to the 2021 financial performance of the company.
Clariant sold around CHF 115 million to retain a 20% stake in the new holding company, alongside Heubach and SK Capital. This combined company is a global pigment player with approximately 3,000 employees generating approximately EUR 1 billion in annual sales with strong service and production capabilities across the globe. This roll-over allows Clariant to benefit more from the improved profitability of the Pigments business, to participate in future growth opportunities and to achieve synergies through the merger with the Heubach Pigments business.
Clariant’s net cash inflows after roll-over and initial debt adjustments, but before closing account adjustments, taxes, transaction costs and a possible earn-out payment amount to approximately CHF 615 million. Clariant intends to use the proceeds of the divestiture to invest in growth projects within core business areas, execute sustainability and innovation strategy, fund performance improvement programs and strengthen Clariant’s balance sheet to achieve and defend a strong investment rating.
“The sale of Pigments concludes the transformation of Clariant into a high value-added specialty chemicals company, allows us to invest in profitable growth in our most attractive segments and to meet the growing demand for more sustainable products,” said said Conrad Keijzer, CEO of Clariant. âWe are convinced that the Heubach and SK Capital consortium is the best owner of the Pigment business and I wish our former colleagues the best in their new environment. Clariant is delighted to participate in the development of the group as a shareholder.
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This press release contains certain statements which are neither published financial results nor other historical information. This document also includes forward-looking statements. Since these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Clariant’s ability to accurately control or estimate, such as future market conditions, currency fluctuations, the behavior of other market participants, actions of government regulators and other risk factors such as: the timing and strength of new product offerings; competitor pricing strategies; the Company’s ability to continue to receive adequate products from its suppliers on acceptable terms, if at all, and to continue to obtain sufficient financing to meet its liquidity needs; and changes in the political, social and regulatory environment in which the Company operates or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis . Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Clariant does not undertake to publish revisions to these forward-looking statements to reflect events or circumstances subsequent to the date of these documents.
Clariant is a focused and innovative specialty chemicals company based in Muttenz near Basel / Switzerland. As of December 31, 2020, the company employed a total of 13,235 people. In fiscal 2020, Clariant recorded sales of CHF 3.860 billion from continuing operations. The company operates in three business areas: care chemicals, catalysis and natural resources. Clariant’s corporate strategy is guided by the overarching goal of ‘deeper chemistry – between people and the planet’ and reflects the importance of connecting customer focus, innovation, sustainability and people. .
Clariant press release Clariant completes the sale of its Pigments activity_20220103_EN
Clariant press release Clariant finalizes the sale of its Pigments_20220103_DE business