Kemira sells Danish acids, caustics distribution business to Brenntag

LONDON (ICIS)–Finland-headquartered chemicals company Kemira said on Monday that it has sold its Danish hydrochloric acid, sulphuric acid and caustic soda distribution business to Germany-based chemicals distributor Brenntag.

The transaction is expected to be completed in the first quarter of 2014. Financial details were not disclosed, but division revenues were around €15m ($21m) in 2012. The sale is not expected to have a material impact on Kemira’s finances, the company added.

The business, which also produces solvents and packed coagulants, was part of Kemira’s Municipal & Industrial water treatment chemicals arm. Brenntag said that it would continue to operate the unit from its existing Danish locations in Vejle, Kalundborg and Hosten, as well as a new location in Copenhagen Harbour.

Kemira Municipal & Industrial division head Frank Wegener said that the sale is likely to improve the division’s financial performance.

“The divested business is not a focus area for Municipal & Industrial segment and the transaction will have a positive impact to the segment’s EBIT [earnings before interest and taxes] margin,” he said.

The announcement follows news that the company is to sell its Brazilian coagulant business to local company Bauminas Quimica.

($1 = €0.73)