Clariant Sells Custom Manufacturing Business to International Chemical Investors Group
Tuesday May 8, 1:30 am ET
MUTTENZ, Switzerland--(BUSINESS WIRE)--Clariant today announced the sale of its Custom Manufacturing Business to International Chemical Investors Group (ICIG) for an undisclosed transaction value. The sale is the latest step in Clariant's strategy to focus on its core competencies in colors, surfaces and performance chemicals.
Clariant's Customer Manufacturing Business supplies a wide range of intermediates and actives ingredients for the agrochemicals, pharmaceuticals and polymers industries. At closing, the new autonomous entity will be one of the world's leading suppliers to the agrochemicals industry with production sites in Germany and the US. In 2006, the Custom Manufacturing Business had sales of around CHF 217 million and about 490 employees. The sales process was initiated only six months ago as a result of the review of the strategic options for the former underperforming Life Science Chemicals Division.
Clariant expects to record a book loss of approximately CHF 70 million. The transaction is expected to close by mid-year after fulfilment of local transfer requirements such as approval of all relevant authorities. All assets and personnel will be transferred to the buyer.
Jan Secher, Clariant's Chief Executive Officer, said: "As an independent entity supported by a committed investor, the Custom Manufacturing Business has an excellent opportunity to improve its performance in the future. It is a major step in focusing our business portfolio on colours, surfaces and performance chemicals."
"The Clariant agrochemicals businesses are an important building block complementing our present portfolio of fine chemical custom manufacturing assets. With this acquisition WeylChem will become an important player in the non-GMP custom manufacturing sector with revenues of approximately 200 million Euro. It is our plan to realize the synergies with our other fine chemicals manufacturing activities and to expand our services to our customers of major chemical companies around the world" says Dr. Achim Riemann, Managing Director of ICIG.
"The Custom Manufacturing Business substantially broadens ICIG's fine chemicals activities and we are looking forward to actively supporting both the German and the U.S. businesses in their organic growth as well as through further additional complementary acquisitions" says Patrick Schnitzer, Managing Director of ICIG.
About International Chemical Investors
International Chemical Investors is an investment group focusing on mid-sized chemical businesses, preferably subsidiaries of large corporations, which are considered non-core, with leading positions in niche markets, operating in competitive environments. Including the newly acquired Clariant businesses, ICIG will operate 14 production facilities located in Germany, the United States, France, Belgium, Ireland and Poland with total sales of close to EUR 500 million and more than 2,500 employees.
Clariant - Exactly your chemistry.
Clariant is a global leader in the field of specialty chemicals. Strong business relationships, commitment to outstanding service and wide-ranging application know-how make Clariant a preferred partner for its customers.
Clariant, which is represented on five continents with over 100 group companies, employs about 21 500 people. Headquartered in Muttenz near Basel, it generated sales of around CHF 8.1 billion in 2006.
Clariant's businesses are organized in four divisions: Textile, Leather & Paper Chemicals, Pigments & Additives, Masterbatches and Functional Chemicals.
Clariant is committed to sustainable growth springing from its own innovative strength. Clariant's innovative products play a key role in its customers' manufacturing and treatment processes or else add value to their end products. The company's success is based on the know-how of its people and their ability to identify new customer needs at an early stage and to work together with customers to develop innovative, efficient solutions.
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