Transaction valued at more than 800 million Swiss francs, Clariant sells its pigment business

On June 14, Swiss specialty chemicals company Clariant announced the sale of its pigment business to a consortium formed by the Heubach Group and SK Capital, with a transaction value of 805 million Swiss francs to 855 million Swiss francs (approximately 5.73 billion to 6.08 billion yuan) Yuan), depending on the financial performance of Clariant's pigment business in 2021, a profit payment of 50 million Swiss francs.

The transaction requires regulatory approval and is expected to be completed in the first half of 2022. When the transaction is completed, Clariant will reinvest and become a 20% shareholder of the ultimate holding company together with Heubach and SK Capital. The combined company will become a global pigment company with approximately 3,000 employees and annual sales of more than 900 million euros.

Clariant CEO Conrad stated that the sale of the pigment business represents the last step in the repositioning of the sales plan and product portfolio announced in July 2018. In the future, Clariant will devote its full attention to improving its core business areas, namely, the income and profitability of care chemicals, catalysts and natural resources.

Heubach Group CEO Johann Heubach said: “We have been in the pigment industry for more than 200 years. My late father and I began to promote the integration of the pigment industry. The merger of Heubach and Clariant pigments is an important milestone in this vision. "The newly formed Heubach Group is capable of serving global customers with industry-leading products and services in the fields of coatings, plastics, inks and professional applications.

Heubach, headquartered in Langelsheim, Germany, is the world's leading manufacturer of high-quality organic, inorganic and anticorrosive pigments and pigment preparations. Heubach is one of the first pigment manufacturers and has more than 200 years of experience in pigment production. Heubach produces approximately 35,000 tons of pigments per year and employs more than 1,000 people.

Clariant's pigment business unit is a supplier of organic pigments, pigment preparations and dyes, and its products are widely used in the automotive, industrial and architectural coatings, and plastics industries. In 2020, 1,900 employees in this business unit generated sales of approximately 850 million Swiss francs.

Clariant stated that with the divestiture of medical packaging in October 2019 and color masterbatch in July 2020, as well as the divestiture of the pigment business, Clariant has transformed into a high-value specialty chemicals company with higher growth than the market. The profitability and stronger cash generation ability. The proceeds from the sale of the pigment business will be used to invest in growth projects in core business areas, implement sustainable development and innovation strategies, fund performance improvement plans, strengthen Clariant’s balance sheet, and reinvest in Clariant’s combined pigments with Heubach In business.