Swiss Clariant in talks to sell non-core units

08 July 2013 12:38  [Source: ICIS news]

ZURICH (ICIS)--Clariant CFO Patrick Jany said on Monday that the Swiss-headquartered specialty chemicals firm is in active talks with several businesses regarding the divestment of its leather services business unit and its detergents & intermediates business line.

Jany, speaking at Clariant’s media day, was not able to disclose what companies the group was in talks with, or financial details.

He said signing of the deal for the units is expected to be done by the end of 2013, with full completion expected in the second half of 2014.

The company is still going ahead with the divestment of it leather chemicals business despite opening a new $1m (€780,000) laboratory dedicated to the segment in Ranipet, Chennai, India.

The company said it sees growth opportunities for its leather business unit in the Indian leather manufacturing sector.

Jany said the leather chemicals unit was a healthy business and the new laboratory added value, adding that it will continue to operate as normal.

The sale of Clariant’s textile chemicals, paper specialties and emulsions business units to private equity firm SK Capital will be completed by the September this year, the CFO added.

Jany said regulatory processes for the Swiss francs (Swfr) 502m ($523m, €405m) acquisition – which was planned to be closed on 30 June – were going slower than expected, and both companies had decided to delay the completion date.

Clariant agreed to sell the three non-core businesses to SK Capital in December 2012. SK Capital is to 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.

Clariant had said the deal was part of a strategy announced in June last year to improve its competitive position.

($1 = Swfr0.96, €1 = Swfr1.24, $1 = €0.78)

By: Franco Capaldo
+44 (0)20 8652 3214

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