GlobeNewswire

Clariant completes its divestment program by reaching agreement to divest its Pigments business

Share

AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR

  • Definitive agreements signed by a consortium of Heubach Group and SK Capital Partners to acquire Clariant’s Pigments business
  • Enterprise Value of CHF 805 million to CHF 855 million, representing a 10.7x to 11.4x stand-alone adjusted EBITDA multiple per April 2021 (LTM) depending on an earn-out payment of CHF 50 million
  • Clariant will be reinvesting for a 20% ownership stake in the combined business
  • Closing anticipated in the first half of 2022

Muttenz, June 14, 2021 – Clariant, a focused, sustainable and innovative specialty chemical company, today announced that it has reached definitive agreements for the divestment of its Pigments business to a consortium of Heubach Group (“Heubach”) and SK Capital Partners (“SK Capital”) at an Enterprise Value (EV) of CHF 805 million to CHF 855 million on a cash and debt free basis, depending on an earn-out payment of CHF 50 million contingent on the 2021 financial performance of Clariant’s Pigments business. This represents a multiple of 10.7 to 11.4 times the stand-alone adjusted 12-month EBITDA per April 2021 (LTM).

At the time of closing of the transaction, Clariant will reinvest to become a 20% shareholder alongside Heubach and SK Capital in the ultimate holding company. The combined business will be a global pigments player with approximately 3 000 employees generating more than EUR 900 million in annual sales and strong service and production capabilities across the globe. The reinvestment enables Clariant to further benefit from the improving profitability of the Pigments business resulting from the initiated efficiency program and to participate in the future growth opportunities as well as synergies of the combination with the Heubach Pigments business.

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first half of 2022. The share of the participation in Infraserv Höchst, Germany, attributable to Clariant’s Pigments business is not part of this transaction.

“We are pleased to announce the agreement with Heubach and SK Capital for the sale of our Pigments business. This achievement represents a final step in the divestment program and portfolio repositioning announced in July 2018. We are confident that with Heubach and SK Capital, we have found the right owners of this business, for our customers, our colleagues, and our other stakeholders. Now our focus can fully be on growing revenue and profitability of our core Business Areas: Care Chemicals, Catalysis and Natural Resources”, said Conrad Keijzer, Chief Executive Officer of Clariant.

Johann Heubach, Chief Executive Officer of the Heubach Group, noted “We have been in pigments for more than 200 years. My late father and I set out to drive consolidation in the pigments industry, and the combination of Heubach and Clariant Pigments is a major milestone in this vision. The fit between Heubach and Clariant Pigments is perfect. The combination of industry leading technologies, a product portfolio serving a wide range of customer requirements and global production and service footprint will give the newly formed Heubach Group the ability to serve our global customer base in the coatings, plastics, inks and specialty applications fields with industry leading products and services.”

Aaron Davenport, a Managing Director of SK Capital, noted “Clariant Pigments is a premier global colorant solutions provider, and, together with our new partners, the Heubach Group and Clariant, we see a tremendous opportunity to create significant value for all stakeholders.”

Once completed, Clariant will have finalized its intended divestments as part of its portfolio upgrade, having previously divested the Healthcare Packaging and Masterbatches businesses. The Pigments divestment concludes Clariant’s transformation into a high value specialty chemical company with above-market growth, higher profitability, and stronger cash generation. The proceeds of the Pigments divestment will be used to invest into growth projects within the core Business Areas, execute the strategy along sustainability and innovation, fund the performance improvement programs as well as strengthen Clariant’s balance sheet and fund the reinvestment into the Clariant-Heubach combined Pigments business.

Clariant’s Pigments business is a leading global provider of superior quality organic pigments, pigment preparations and dyes which are used in many applications such as the automotive industry, for industrial and architectural coatings as well as for the plastics industry. In 2020, the unit’s 1,900 employees generated approx. CHF 850 million in sales on a stand-alone adjusted basis.

About Clariant
Clariant is a focused and innovative specialty chemical company based in Muttenz, near Basel/Switzerland. On 31 December 2020, the company employed a total workforce of 13 235. In the financial year 2020, Clariant recorded sales of CHF 3.860 billion for its continuing businesses. The company reports in three business areas: Care Chemicals, Catalysis and Natural Resources. Clariant’s corporate strategy is based on five pillars: focus on innovation and R&D, add value with sustainability, reposition portfolio, intensify growth, and increase profitability.

About HeubachGroup
Heubach has more than 200 years of experience in pigments production as one of the first-ever manufacturers of pigments. Heubach is a leading global producer of organic, inorganic and anticorrosive pigments and pigment preparations, is headquartered in Langelsheim, Germany and has sites in Germany, US, and India with sales offices around the world.

About SK Capital
SK Capital is a private investment firm with a disciplined focus on the specialty materials, chemicals and pharmaceuticals sectors. SK Capital’s portfolio of businesses generates revenues of approximately $11 billion annually, employs more than 16,000 people globally and operates 150 plants in 28 countries. The firm currently has greater than USD 5 billion of assets under management.

CORPORATE MEDIA RELATIONSINVESTOR RELATIONS
Jochen Dubiel

Phone +41 61 469 63 63
jochen.dubiel@clariant.com
Andreas Schwarzwälder

Phone +41 61 469 63 73
andreas.schwarzwaelder@clariant.com



Claudia Kamensky

Phone +41 61 469 63 63
claudia.kamensky@clariant.com
Maria Ivek

Phone +41 61 469 63 73
maria.ivek@clariant.com



Thijs Bouwens

Phone +41 61 469 63 63
thijs.bouwens@clariant.com
Alexander Kamb

Phone +41 61 469 63 73
alexander.kamb@clariant.com








Follow us on Twitter, Facebook, LinkedIn, Instagram.

This media release contains certain statements that are neither reported financial results nor other historical information. This document also includes forward-looking statements. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Clariant’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors such as: the timing and strength of new product offerings; pricing strategies of competitors; the Company’s ability to continue to receive adequate products from its vendors on acceptable terms, or at all, and to continue to obtain sufficient financing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Clariant does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.







www.clariant.com








Clariant is a focused and innovative specialty chemical company based in Muttenz, near Basel/Switzerland. On 31 December 2020, the company employed a total workforce of 13 235. In the financial year 2020, Clariant recorded sales of CHF 3.860 billion for its continuing businesses. The company reports in three business areas: Care Chemicals, Catalysis and Natural Resources. Clariant’s corporate strategy is based on five pillars: focus on innovation and R&D, add value with sustainability, reposition portfolio, intensify growth, and increase profitability.


Attachments

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.

About GlobeNewswire

GlobeNewswire
GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://globenewswire.com

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire

Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire

Financière de Tubize - 2021 halfyear financial report2.8.2021 08:00:00 CEST | Press release

Press release 2 August 2021 Embargo till 08:00h CET FINANCIERE DE TUBIZE SA Allée de la Recherche 60, 1070 Brussels Contact: Eric Nys, day-to-day management, eric.nys@financiere-tubize.be 2021 half-year financial report Regulated information 2 August 2021 The board of directors of Financière de Tubize has issued the 2021 half-year financial report. This report is available on the website www.financiere-tubize.be Profit for the period in accordance with Belgian accounting standards: € 85,0 million,Profit for the period in accordance with International Financial Reporting Standards (IFRS): € 204,8 million,Dividend received from UCB: € 86,5 million (€ 1,27 per share, an increase of 2,4% compared to 2020),Dividend paid to shareholders of Financière de Tubize of € 30,3 million (€ 0,68 per share, an increase of 9,6% compared to 2020), Decrease of outstanding bank borrowings from € 33,5 million at 31 December 2020 to € 0,0 at 30 June 2021,Acquisition of 257.000 UCB shares, increasing the hold

Biotalys announces end of Stabilization Period and the partial exercise of the Over-allotment Option in respect of 712,942 Shares in connection with its Initial Public Offering2.8.2021 07:00:00 CEST | Press release

Ghent, BELGIUM, Aug. 02, 2021 (GLOBE NEWSWIRE) -- This announcement is not an offer to invest in the shares (the “Shares”) of Biotalys. An investment in the Shares can only be based on the prospectus (the “Prospectus”) Biotalys has issued in connection with the offering of its Shares and which has, subject to the certainlimitations, been made available on the Company’s website atwww.biotalys.com/investorsand prospective investors must read the entire prospectus in order to fully understand the potential risks and rewards associated with the decision to invest in the Shares. Prospective investors should read in particular the section on “Risk Factors” for a discussion of certain factors which should be considered in connection with an investment in the Shares, includingthe following risks: (i) Biotalys has never brought a product to the market. All but one of Biotalys’ product candidates are still in early stages of discovery. Only one product candidate is in the registration phase, but

TGS Announces NOAKA Ocean Bottom Node Seismic Survey on the Norwegian Continental Shelf2.8.2021 07:00:00 CEST | Press release

OSLO, Norway (2 August 2021) - TGS, a global provider of energy data and intelligence, today announced a new Ocean Bottom Node (OBN) seismic survey on the Norwegian Continental Shelf (NCS). The 437 square kilometer survey will be acquired in the NOAKA area, between Oseberg and Alvheim in the Norwegian North Sea, containing both held and open acreage. This region has seen significant Infrastructure-Led Exploration (ILX) activity in recent years and includes the development of the NOAKA fields, one of the largest developments on the NCS, with recoverable reserves of more than 500 million barrels of oil equivalents. TGS expects to emulate the recent success of the TGS-AGS Utsira OBN project in the North Sea (the first large-scale, densely sampled OBN survey for exploration) and will apply the learnings from TGS’ ongoing reprocessing of Utsira, including the extraction and use of ultra-long offset signal for FWI-based model building. As with Utsira, the NOAKA survey will utilize full azimu

Yara continues its transformation with divestment of Salitre phosphate mining project in Brazil1.8.2021 21:00:00 CEST | Press release

Oslo, 1 August 2021: Yara has signed a Share Purchase Agreement with EuroChem to sell its Salitre phosphate mining project for a cash consideration of USD 410 million. Yara’s ongoing transformation has a strategic focus on food solutions, premium products and enabling the hydrogen economy. Salitre remains an attractive project, but as previously communicated the project progress has been impacted by Covid 19, and significant construction time and capital expenditure remains to reach completion. The Salitre divestment therefore supports Yara’s transformation by reallocating capital and risk appetite in the coming years towards Yara’s strategic focus areas. “This transaction allows us to further sharpen our strategic focus, based on our strong competitive edges. Yara Brazil will continue to play an essential role in this growth agenda, and this transaction enables that growth to be driven with a sharper downstream focus,” said Svein Tore Holsether, President and Chief Executive Officer o

Scientists Narrow Search For Mysterious Mad Trapper To Sweden30.7.2021 23:21:41 CEST | Press release

EDMONTON, Alberta and HOUSTON, July 30, 2021 (GLOBE NEWSWIRE) -- This month marks the 90th anniversary of the arrival of the fugitive known as ‘The Mad Trapper of Rat River’ to the Canadian North and the revelation of an important new clue to identifying the mysterious fugitive. Following the unprovoked shooting of RCMP Constable A.W. King in December 1931, the unknown criminal who identified himself by the pseudonym Albert Johnson led an RCMP posse on seven-week manhunt across the desolate Arctic landscape. During the pursuit, the Mad Trapper shot and killed Constable E. Millen. With the help of indigenous guides the Mad Trapper was located and killed during a gun battle on the Eagle River on February 17, 1932. Despite the RCMP releasing photos of the Mad Trapper and receiving hundreds of tips from around the world his identity was never established In 2007, Myth Merchant Films of Alberta Canada secured permission for a team of forensic experts to exhume the body of the Mad Trapper in

KBC Group: KBC remains strongly capitalised under 2021 EU-wide EBA stress test30.7.2021 18:15:00 CEST | Press release

Press Release Outside trading hours - Regulated information* Brussels, 30 July 2021 (6.15 p.m. CEST) KBC remains strongly capitalised under 2021 EU-wide EBA stress test KBC notes the announcements made today by the European Banking Authority (EBA) regarding the results of the 2021 EU-wide stress test. A brief set of slideson the KBC data is available at www.kbc.com. The impact of the stress test on KBC’s fully loaded Common Equity Tier-1 (CET1) ratio of 17.58% at year-end 2020 caused this ratio to increase by 1.92 percentage points to 19.50% at year-end 2023 under the base scenario. Under the adverse scenario, KBC’s fully loaded CET1 ratio would fall by 3.51 percentage points to 14.07%1. KBC’s leverage ratio, which stood at 6.42% at year-end 2020, would increase to 7.09% under the base scenario and decrease to just 5.53% under the adverse scenario. Commenting on today’s announcements, Johan Thijs, KBC Group CEO had this to say: ‘The results of this regular, theoretical exercise conduct

EBA reports on outcome of 2021 EU-wide stress test30.7.2021 18:10:23 CEST | Press release

EBA reports on outcome of 2021 EU-wide stress test ING Group was subject to the 2021 EU-wide stress test conducted by the European Banking Authority (EBA), in cooperation with the European Central Bank (ECB), the European Systemic Risk Board (ESRB) and De Nederlandsche Bank. ING Group notes the announcements made today by the EBA on the stress test and fully acknowledges the outcomes of this exercise. The 2021 EU-wide stress test does not contain a pass/fail threshold and instead is designed to be used as an important source of information for the purposes of the Supervisory Review and Evaluation Process. The results will assist competent authorities in assessing ING Group’s ability to meet applicable prudential requirements under stressed scenarios. The adverse stress test scenario was set by the ECB/ESRB and covers a three-year time horizon (2020-2023). The stress test has been carried out applying a static balance sheet assumption as at December 2020, and therefore does not take int