Divestment Clariant to Divest in Joint Venture to Sabic

Clariant has signed definitive agreements to divest its 50 percent stake in the joint venture which owns Scientific Design Company to its long-term joint venture partner, Sabic.

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Muttenz/Switzerland – Sabic is executing a call option raised in 2015 to acquire this stake, originally purchased by Süd-Chemie in 2003 and acquired by Clariant in 2011, pursuant to a change-of-control clause in the Joint Venture agreement.

Both Clariant and Sabic completed a comprehensive, arms-length due diligence process to value Scientific Design at 260 million dollar and Clariant’s 50 percent share at 130 million dollar. Together with a profit-sharing agreement beginning on January 1, 2021 until the closing of the transaction, this represents an attractive valuation for Clariant’s 50 percent stake at around twelve times Scientific Design’s 2021 expected EBITDA, assuming a mid-2022 closing.

The final amount is payable at closing, which is subject to the receipt of the required regulatory approvals. The closing is expected to take place in mid-2022.

In 2020, Scientific Design Company generated sales of 131 million dollar. The company, headquartered in Little Ferry, New Jersey, United States, is present in the development, licensing and catalyst supply of proprietary processes for the production of ethylene oxide (EO), ethylene glycol (EO/EG), bio-ethylene, bio-EO, bio-EG, EO derivatives, polyols and maleic anhydride. In addition to these technologies, it produces proprietary catalysts and equipment for use in their own and other industrial processes.

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