1.6 Billion Dollar Transaction Clariant Sells Masterbatches Business to Poly One
Clariant plans to sell its entire Masterbatches business to Poly One. The transaction values the business at approximately $ 1.6 billion.
Muttenz/Switzerland - As part of its focus on growth industries, the Swiss specialty chemicals company Clariant is now also selling its Masterbatches business. Following the divestment of Healthcare Packaging in October 2019, the agreement on the sale of Masterbatches is a further step in implementing the strategy defined in 2015 of focusing on the three core businesses Care Chemicals, Catalysis and Natural Resources. Hariolf Kottmann, Executive Chairman of Clariant, is confident that the remaining sale of the pigments business can also be completed in 2020.
The proceeds from the intended divestments of the company’s non-core businesses will be used to invest in innovations and technological applications within the core Business Areas, to strengthen the balance sheet and to return capital to shareholders.
The deal with Poly One comprises two separate transactions. The global Masterbatches business is sold in a deal valued at $ 1.5 billion, representing c. 12.1 times the last twelve months reported Ebitda (ending September 2019). Separately, the sale of the Masterbatches business in India has been approved by Clariant Chemicals (India) Limited’s Board of Directors and is valued at approx. $ 60 million, representing c. 17.3 times the last twelve months reported Ebitda (ending September 2019). Clariant Chemicals (India) Limited is listed on the stock exchanges in India with Clariant AG holding a 51 % controlling stake. The closing of both transactions is subject to customary closing conditions and regulatory approvals.