Specialty chemicals company Clariant (Muttenz, Switzerland) has agreed to sell its entire masterbatches business to PolyOne in two separate transactions. The total value of the deal is approximately $1.6 billion, which is payable at closing expected in Q3 2020. In the financial year 2018 (ending September 2019), the total masterbatches business generated sales of around 1.181 billion Swiss francs (approximately $1.2 billion).
The news comes on the heels of Clariant’s sale of its Healthcare Packaging unit in October 2019.
Clariant’s strategy is to focus on “businesses with above-market growth, higher profitability and stronger cash generation,” commented Hariolf Kottmann, Executive Chairman of Clariant. Kottmann noted that the sale of its masterbatches business is “an important step in delivering on our strategy defined in 2015 to concentrate on our three business areas: Care chemicals, catalysis and natural resources.
“As announced, we are confident that we will execute the remaining divestment of our pigments business in 2020 in order to build the new, more focused and stronger Clariant by 2021,” Kottmann added.
Separately, in a second transaction with PolyOne, the sale of Clariant’s masterbatches business in India has been approved by Clariant Chemicals (India) Board of Directors and is valued at $60 million.
Both transactions are subject to customary closing conditions and regulatory approvals.
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