Advanced process of divesting the Clariant Textile Chemical Business
As we all know very well, Swiss Clariant (Specialty Chemicals) has signed an agreement on December 17, 2012 to sell its Textile Chemicals, Paper Specialties and Emulsions businesses to SK Capital (investment firm with focus on specialty materials, chemicals an healthcare sectors) and now some more details on the advanced process are reported
After closing of the transaction – expected in the third quarter of the ongoing year – the three business will be regrouped under a new company with the name of Archroma. The company will be a world leading supplier of products and solutions to the textile, paper, adhesives and coating industries with a turnover of CHF 1.2 billion and around 3000 employees. The company – and this is a surprise – will be headquartered in Switzerland, as well as the leadership of Achroma Paper Solutions. However Achroma Textile Specialties will be – as under the roof of Clariant – managed from Singapore and Achroma Emulsions Products will be managed from Brazil.
According to Clariant the operational and legal separation, including the incorporation of legal entities, licensing and registration activities, the establishment of IT systems, and the development of infrastructural and support services, as well as ensuring a seamless transition for the Achroma employees is proceeding well. Clariant’s CFO, Patrick Jany, stated: “The project is running full steam ahead. I am delighted to see the commitment of the joint separation team as well as the employees of the businesses are highly motivated and are working on the separation with great professionalism.
Of course, setting up the new company is depending on merger control and governmental approvals and authorisations, several of which remain pending. To ensure a successful separation process, with minimal disruptions for both customers and employees the closing of the transaction is expected at the end of the third quarter of 2013. Barry Siadat, a Managing Director of SK Capital, declared: “We remain jointly committed to provide our customers with the highest quality products and services throughout this period of transition”.
The discontinued businesses sales (including the above mentioned businesses and in addition Leather Services, Detergents and Intermediates) in the first quarter of this year amounted to CHF 421 million (CHF 432 million) and the net result increased from CHF one million to CHF 12 million. Excluding these businesses, Clariant’s sales in the first quarter amounted to CHF 1526 million (1513 million) or a plus of one percent and in local currencies + 2 %. The operational result EBITDA (before extraordinary items) decreased by one percent or from CHF 211 million to CHF 209 million and the margin fell from 13.9 % to 13.7 %. The EBIT (after exceptional items, these decreased from CHF33 million to CHF 22 million and because of less restructuring costs in the continuing businesses) increased by four percent or from CHF 114 million to CHF 119 million and the net result was up from CHF 16 million to CHF 38 million. For the full year 2013, Clariant expects further progress in sales and profitability as compared to 2012, and by focusing on growth and continuous cost efficiency. It has to be added that the search for buyers for the Business Units Leather Services and Detergents and Intermediates is further pursued