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ICL selling fire safety and oil additives units to SK Capital
Posted on Thursday, 07 December 2017 11:47
Tel Aviv-based Israel Chemicals (ICL) is divesting its fire safety and oil additives units to private equity firm SK Capital in a deal valued at USD 1.00 billion.

Completion is expected in the first half of 2018, subject to customary closing conditions, including approvals from the relevant regulatory bodies.

The targets are currently part of ICL Specialty Solutions’ advanced additives division and operate in Europe, Australia, North and South America and Asia.

ICL’s fire safety business supplies chemicals, including class A and B foams, and services for the fighting of wild fires and its oil additives unit’s products are used in the manufacturing processes for lubrication oil additives, mining chemicals and pesticides.

Together, the units contributed USD 112.00 million to ICL’s operating income for the year ending 30th September 2017, up from the USD 79.00 million they were responsible for in 2016.

This improvement can be attributed to the unusually high number of North American wild fires in the timeframe.

ICL executive chairman Johanan Locker said that the sale would “reduce debt leverage, and provide flexibility of innovation and growth in ICL’s specialty products and in precision agriculture”.

The phosphatic fertiliser manufacturer initially announced its plans to sell off non-core assets in June, stating that it would instead focus on its mineral chains.

Operating in the agriculture, food and engineered materials markets, the company is listed on both the New York and Tel Aviv stock exchanges and employs 13,000 people.

For the three months ending 30th September 2017, ICL reported net income of USD 82.00 million, rising from the USD 347.00 million loss posted for the same period last year due to lower impairment costs incurred in the quarter.

This is larger than the other six acquisitions announced by New York-headquartered SK Capital so far this year, according to Zephyr, the M&A database published by Bureau van Dijk.

© Zephus Ltd