Clariant agreed to sell its pigments business to Heubach Group and SK Capital Partners in a deal that values the business at up to 855 million Swiss francs, or about $951.27 million. The deal is expected to be finalized in the first half of 2022.
According to the company, the deal represented an enterprise value of 805 to 855 million Swiss francs, depending on an earn-out payment based on the 2021 financial performance of the business. Clariant said the sale represented a multiple of 10.7 to 11.4 times the standalone EBITDA of the pigments business in the year to April 2021.
At the time of closing the transaction, Clariant will reinvest to become a 20% shareholder in the new combined business, which employs 3,000 people and has annual sales of around €900 million euros, or about $1.09 billion. According to the company, the reinvestment will enable Clariant to further benefit from the improving profitability of the pigments business resulting from the initiated efficiency program and to participate in the future growth opportunities and synergies of the combination with the Heubach Pigments business.
The company, which has already divested its healthcare packaging and masterbatches business to raise profit margins, says the sale is a final step in the divestment program and portfolio repositioning announced in July 2018.
“Now our focus can fully be on growing revenue and profitability of our core business areas: care chemicals, catalysis, and natural resources,” said Conrad Keijzer, chief executive officer of Clariant.
The post Clariant to Sell Pigments Business appeared first on American Coatings Association.
from American Coatings Association https://www.paint.org/clariant-pigments/
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