Renewable Fuels Clariant Concludes Takeover of BASF’s Attapulgite Business Assets in USA

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Clariant has successfully completed the 60-million-dollar acquisition which will enable the company to strengthen its technology position in the demanding markets for the purification of edible oils and renewable fuels. With this deal, the company also intends to expand its footprint in the North American market.

Muttenz/Switzerland – Clariant has completed the acquisition of BASF’s U.S. based Attapulgite business assets for 60 million dollars in cash. Structured as an asset deal, the transaction includes the transfer of land as well as mining rights, the processing facility, and inventories, which will be integrated into Clariant’s Functional Minerals business. The finalized deal also includes an agreement for the long-term supply of attapulgite-based products to BASF. The transaction will improve the Ebitda margin profile of Clariant’s Business Area Natural Resources while supporting the company’s path towards reaching its 2025 targets.

Adsorbent clays, such as attapulgite, are an important enabler for growth in the purification of edible oils and renewable fuels. In edible oil they remove contaminants thereby enhancing the shelf-life and oil quality, whereas in renewable fuels they play a key role in removing contaminants during the pre-treatment process, thereby protecting the catalyst. This enables a particularly stable and economically viable process. With this acquisition, Clariant’s Functional Minerals business will increase its production capacity and subsequently its footprint in the attractive North American market.

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"This acquisition is a perfect example of our disciplined approach to bolt-on acquisitions as it provides tangible synergies, strengthens one of our core segments and brings us closer to our 2025 targets,” said Conrad Keijzer, Chief Executive Officer at Clariant. “At the same time, the acquisition is another step forward in the energy transition away from fossil-based fuels.”

The newly acquired attapulgite business is one of the largest miners and producers of attapulgite in North America. It encompasses mining operations in Georgia as well as Florida and processing operations in Quincy, Florida. This business is well recognized in the industry for its unique combination of mineral quality, mine reserve size, and strategic location. It produces attapulgite based products for a wide range of applications and end markets, and generated sales of approximately 36 million dollars in 2020.

North America is a strategic region for Clariant with numerous growth opportunities in the edible oil and renewable fuel markets. With its expertise and via this acquisition, Clariant will increase its production capacity to be able to meet the growing demand for renewable fuels whilst also maintaining its supply integrity to the edible oils market.

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