Clariant to divest its African Water Treatment Business
Clariant, the world leader in specialty chemicals announces the divestment of its Water Treatment business in Africa to AECI, South Africa. Total consideration of the sale amounts to CHF 34 million in cash at closing to be expected by the end of the second quarter 2014
AECI is an explosives and specialty chemicals group domiciled in South Africa. Its businesses are characterised by application know how and service delivery in many African countries. It already has a footprint in the Industrial Water and Municipal Waste Water markets in South Africa, supplying a Total Water Solution to its customers.
The Water Treatment business of Clariant provides chemicals, services and engineering solutions to a wide range of industries, such as mining, automotive, food and beverage, metals, and others. It also serves municipalities to ensure supply of drinking water in many African communities. In 2013, the Water Treatment business in Africa reported approximately CHF 41 million in sales. In total 210 employees in Africa are affected by the transaction.
The divestment is a result of Clariant’s continuous active portfolio management. The Water Treatment business does no longer meet the company’s positioning as a globally leading company in all of its businesses. Although Water Treatment is an overall attractive industry and the business is well position in Africa, Clariant has decided to identify a better owner who is able to focus on this service driven activity.