Clariant sells pigments business to consortium consisting of Heubach and SK Capital
The Heubach Group, in partnership with SK Capital Partners, announced a definitive agreement to acquire Clariant’s pigments business. The combined business will operate under the Heubach name and create a leading global pigments business with annual sales of more than EUR 900 million.
The transaction values Clariant Pigments at approximately EUR 740 million, with an additional consideration of EUR 46 million contingent on the business unit’s financial performance in 2021. As part of the transaction, Clariant will hold a minority stake in the combined company, demonstrating its continued commitment to the success of Clariant Pigments and the significant growth opportunities in the combination with Heubach.
Heubach is a global manufacturer of organic, inorganic and non-toxic corrosion protection pigments with four global production sites and approximately 1,000 employees. Clariant Pigments is a worldwide supplier of organic pigments, pigment preparations and dyes, operates 13 global production sites and employs around 1,900 people.
Highsynergy effects expected
Highsynergy effects are expected from the merger of Heubach and Clariant Pigments.A diversified pigments company will be created that will strengthen theexisting positions of Heubach and Clariant Pigments. The two companies have acomplementary product portfolio and a regionally compatible plant structure,enabling an expanded product range and broader geographic coverage.
JohannHeubach, CEO of the Heubach Group, said, “We have been in the pigmentsbusiness for more than 200 years. My late father and I set out to driveconsolidation in the pigments industry, and the merger of Heubach and ClariantPigments is an important milestone in this vision. We are very pleased to haveSK Capital as a partner, and we are excited to benefit from their expertise inintegrating and operating businesses in the global chemical industry. Heubachand Clariant Pigments are a perfect fit. The combination of industry-leadingtechnologies, a product portfolio covering a broad range of customer needs, anda global manufacturing and service presence will enable the newly formedHeubach Group to serve our global customer base in coatings, plastics, inks andspecialty applications with industry-leading products and services.”
Transactionclosing expected to close in the first half of 2022
AaronDavenport, a managing director of SK Capital, noted, “Clariant Pigments isa global leader in colorant solutions, and together with our new partners,Heubach Group and Clariant, we see a tremendous opportunity to createsignificant value for all parties.”
ConradKeiijzer, Chief Executive Officer of Clariant, said, “We are pleased toannounce the agreement with Heubach and SK Capital to sell our pigmentsbusiness. We are confident that with Heubach and SK Capital we have found theright new owners for this business, for our customers, our colleagues and ourother stakeholders.”
The closingof the transaction is subject to customary conditions and approvals and isexpected to occur in the first half of 2022.