27 December 2012 10:53 [Source: ICIS news]
LONDON (ICIS)--Clariant has agreed to sell its textile chemicals, paper specialties and emulsions businesses to SK Capital for about Swiss francs (Swfr) 502m ($552m, €415m), the Switzerland headquartered specialties group said on Thursday.
Private equity firm SK Capital will pay about 6.3 times estimated 2012 earnings before interest, tax, depreciation and amortisation (EBITDA) for the businesses. About Swfr460m of the total agreed divestment price is to be paid in cash.
“For Clariant the transaction marks a significant milestone in the execution of its profitable growth strategy, after the acquisition of Sud-Chemie in 2011”, Clariant CEO Hariolf Kottmann said.
“I am pleased that we are able to execute this divestment faster than originally expected. By the end of 2013, Clariant will be an even more profitable company than today, generating a majority of sales in noncyclical growth businesses,” he added.
The divested businesses are expected to generate SFr1.2bn in sales this year, approximately 15% of the Clariant group total, and an EBITDA of Swfr80m. They employ around 3,000, or 14% of the Clariant total workforce, and operate in 35 countries.
Earlier this year, Clariant said that it was looking to sell the divested businesses by the end of 2013. It is also looking to sell its leather services business unit and its detergents & intermediates business line.
($1 = €0.76; Swfr0.91)
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