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US firm buys Clariant units for Rs 3000cr

New Delhi, Dec. 27 (PTI): Clariant Chemicals (India) has sold its textile chemicals, paper specialties and emulsions businesses to US-based SK Capital for CHF (Swiss Francs) 502 million (about Rs 3,029 crore).

Clariant India, part of Swiss specialty chemical giant Clariant AG, also sold its research and development centre, sales and marketing wing, production plants and sites to private investment firm SK Capital, which focuses on the specialty materials, chemicals and healthcare sectors.

“The total consideration of the sale amounts to approximately CHF 502 million, out of which approximately CHF 460 million in cash, equivalent to 6.3 times the estimated full year 2012 recurring EBITDA of those businesses. The divestment has been approved by the boards of both companies,” Clariant AG said on its website.

Subject to regulatory approvals, the transaction is expected to close by the end of the second quarter of 2013.

In a filing to the Bombay Stock Exchange, Clariant Chemicals (India) said, “SK Capital has agreed to purchase the business units textile chemicals, paper specialties and the business line emulsions from Clariant.”

This will include the transfer of the whole R&D, applications, sales and marketing organisation along with production plants and sites worldwide, it added.

Clariant Chemicals (India) has manufacturing facilities for textile chemicals, paper specialties and emulsion products at Roha (Maharashtra).

The firm is also into specialty chemicals and is a leading player in pigments, textile chemicals, leather chemicals and biocides for paints.

It had reported net sales of Rs 267.08 crore and a net profit of Rs 16.75 crore for the quarter ended September 30.

SK Capital is investing from SK Capital Partners III, LP, a $500-million fund of committed capital, and is located in New York and Boca Raton (Florida).

Shares of Clariant Chemicals (India) today rose 2.01 per cent to settle at Rs 635.25 apiece from its previous close on the Bombay Stock Exchange.

 
 
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