Comprehensive M&A data with integrated detailed company information

Clariant planning sale of pigments business
Posted on Thursday, 10 January 2019 12:38
Swiss speciality chemicals company Clariant is planning to sell its pigments business by the end of 2020, according to Reuters.

Sources told the news provider that the company is currently on the lookout for a buyer after it decided to jettison the unit as part of a streamlining process and hopes to reach an agreement before this year’s summer break.

The company has appointed Deutsche Bank to advise on the potential deal, which is expected to be worth around CHF 800.00 million (EUR 710.14 million), the people noted.

However, a separate source said the pigments division’s enterprise value could be in excess of CHF 1.30 billion and total proceeds may come to between CHF 1.50 billion and CHF 1.60 billion, once additional plastics and coatings assets on the block are taken into account.

According to Reuters’ sources, private equity players are likely to be among those interested in a purchase of the unit.

The people continued by saying that information packages on the pigments segment are likely to be distributed at some point during the first quarter of this year.

None of the parties involved have made an official statement on the matter.

According to its website, Clariant’s pigments unit is a world leader in the provision of organic pigments, pigment preparations and dyes used in coatings, printing, plastics, consumer products and other special applications.

The division’s client base spans the automotive, industrial, architectural, plastics and printing sectors.

Clariant recorded operating income of CHF 496.00 million in 2017, down from CHF 512.00 million over the preceding 12 months.

According to Zephyr, the M&A database published by Bureau van Dijk, there were 20 deals targeting synthetic dye and pigment manufacturers announced worldwide in 2018.

Those targeted include US-based ADA Carbon Solutions, for which Advanced Emissions Solutions agreed to pay USD 75.00 million in November in what proved to be the sector’s largest deal of the year.

© Zephus Ltd