Clariant divests its Pigments business

The Heubach Group and SK Capital Partners shut conquering of Global Colorants Business of Clariant.

Clariant , a focused, sustainable, and innovative specialty chemical company, announced that it has reached definitive agreements for the divestment of its Pigments business to a consortium of Heubach Grouping ("Heubach") and SK Uppercase Partners ("SK Capital") at an Enterprise Value (EV) of CHF 805 million to CHF 855 million on a greenbacks and debt free basis, depending on an earn-out payment of CHF 50 million contingent on the 2022 financial performance of Clariant'due south Pigments business . This represents a multiple of 10.7 to 11.4 times the stand-solitary adapted 12-month EBITDA per April 2022 (LTM).

Clariant will reinvest for 20% ownership stake in combined business

At the time of endmost of the transaction, Clariant will reinvest to become a 20% shareholder alongside Heubach and SK Capital in the ultimate holding company. The combined business will exist a global pigments player with approximately 3 000 employees generating more than EUR 900 million in annual sales and strong service and production capabilities across the globe.

The reinvestment enables Clariant to further do good from the improving profitability of the Pigments business organization resulting from the initiated efficiency program and to participate in the future growth opportunities and synergies of the combination with the Heubach Pigments business organization.

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the kickoff half of 2022. The share of the participation in Infraserv Höchst , Frg, attributable to Clariant's Pigments business organization is not function of this transaction.

"Nosotros are pleased to announce the agreement with Heubach and SK Capital for the sale of our Pigments business. This achievement represents a final step in the divestment program and portfolio repositioning appear in July 2018. Nosotros are confident that with Heubach and SK Capital, we have institute the right owners of this business for our customers, our colleagues, and our other stakeholders. Now our focus can fully be on growing acquirement and profitability of our core Business Areas: Care Chemicals, Catalysis, and Natural Resources", said Conrad Keijzer , Chief Executive Officer of Clariant.

Johann Heubach , Primary Executive Officer of the Heubach Group, noted, "We take been in pigments for more 200 years. My late male parent and I prepare out to drive consolidation in the pigments industry, and the combination of Heubach and Clariant Pigments is a major milestone in this vision. The fit betwixt Heubach and Clariant Pigments is perfect. The combination of industry leading technologies, a production portfolio serving a broad range of customer requirements, and global production and service footprint will give the newly formed Heubach Grouping the power to serve our global client base of operations in the coatings, plastics, inks, and specialty applications fields with manufacture leading products and services."

Aaron Davenport , a Director of SK Upper-case letter, noted, "Clariant Pigments is a premier global colorant solutions provider, and, together with our new partners, the Heubach Grouping and Clariant, we see a tremendous opportunity to create significant value for all stakeholders."

In one case completed, the company will have finalized its intended divestments as role of its portfolio upgrade, having previously divested the Healthcare Packaging and Masterbatches businesses . The Pigments divestment concludes Clariant'south transformation into a high-value specialty chemical company with to a higher place-market growth, college profitability, and stronger cash generation.

The gain of the Pigments divestment will be used to invest in growth projects within the core Business Areas, execute the strategy along with sustainability and innovation, fund the operation improvement programs, and strengthen Clariant's residue sheet and fund the reinvestment into the Clariant-Heubach combined Pigments concern.

Clariant'due south Pigments business is a leading global provider of superior quality organic pigments, paint preparations, and dyes used in many applications such as the automotive industry , industrial and architectural coatings, and the plastics industry . In 2020, the unit's 1,900 employees generated approx. CHF 850 million in sales on a stand-alone adjusted basis.

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