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.
www.clariant.com
