Swiss firm Clariant sells Indian units for Rs 3,029 cr

Tags: News
Clariant Chemicals (India) on Thursday said that it has sold its textile, chemicals, paper specialties and emulsions businesses to the US-based SK Capital for 502 million Swiss Francs (about Rs 3,029 crore).

Clariant Chemicals (India), part of Swiss specialty chemical giant Clariant, also sold its research and development centre, sales and marketing wing, production plants and sites to private investment firm SK Capital, which focuses on the specialty materials, chemicals and healthcare sectors.

“The total consideration of the sale amounts to approximately 502 million Swiss Francs, out of which approximately 460 million Swiss Francs will be paid in cash. This is equivalent to 6.3 times the estimated full-year 2012 recurring Ebitda of the businesses. The divestment has been approved by the boards of both the companies,” Clariant said in a statement on its website.

Subject to regulatory approvals, the transaction is expected to close by the end of the second quarter of 2013, it added.

In a filing to the Bombay Stock Exchange (BSE), Clariant Chemicals (India) said, “SK Capital has agreed to purchase the textile chemicals, paper specialties and the business line emulsions units from Clariant.”

This will include the transfer of the whole research and development, applications, sales and marketing organisation along with production plants and sites worldwide, it added.

Clariant Chemicals (India) has production facilities for manufacturing textile chemicals, paper specialties and emulsion products at its Roha (Maharashtra) plant.

The company is into specialty chemicals and is a leading player in pigments, textile chemicals, leather chemicals and biocides for paints in India.

It had reported net sales of Rs 267.08 crore and net profit of Rs 16.75 crore for the quarter ended September 30, 2012.

At present, S K Capital is investing from S K Capital Partners III, LP -- a $500 million fund of committed capital -- and is located in the US at New York and Boca Raton, Florida.

Shares of Clariant Chemicals (India) on Thursday rose by 2.01 per cent to settle at Rs 635.25 apiece from its previous close at the BSE.

EDITORIAL OF THE DAY

  • Government must wake up to the woes of electricity generators

    India is not staring at a power crisis yet, but an estimated 46,000 mw of power capacities are at risk today.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Arun Nigavekar

Moocs will not replace traditional education

I am revisiting the topic of massive open online course ...

Zehra Naqvi

Minimalism: declutter your life

When you imagine an ideal place to live, you think ...

Gautam Gupta

Our fashion schools need to notch it up

“Creativity is the key to success and primary education is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture