Specialty chemicals major, Clariant is selling its pigments business to a consortium consisting of pigment maker Heubach Group and private investment firm SK Capital.
The combined business will operate under the Heubach name and create a leading global pigments business with annual sales of more than EUR 900 million ($1.09 billion).
The transaction values Clariant Pigments at approximately EUR 740 million ($897 million), with an additional consideration of EUR 46 million ($55.8 million) contingent on the business unit’s financial performance in 2021.
As part of the transaction, Clariant will hold a minority stake in the combined company, demonstrating its continued commitment to the success of Clariant Pigments and the significant growth opportunities in the combination with Heubach.
Johann Heubach, CEO of the Heubach Group, said, “We have been in the pigments business for more than 200 years. My late father and I set out to drive consolidation in the pigments industry, and the merger of Heubach and Clariant Pigments is an important milestone in this vision. We are very pleased to have SK Capital as a partner, and we are excited to benefit from their expertise in integrating and operating businesses in the global chemical industry.
Heubach and Clariant Pigments are a perfect fit. The combination of industry-leading technologies, a product portfolio covering a broad range of customer needs, and a global manufacturing and service presence will enable the newly formed Heubach Group to serve our global customer base in coatings, plastics, inks and specialty applications with industry-leading products and services.”
Aaron Davenport, a managing director of SK Capital, noted, “Clariant Pigments is a global leader in colorant solutions, and together with our new partners, Heubach Group and Clariant, we see a tremendous opportunity to create significant value for all parties.”
Conrad Keiijzer, Chief Executive Officer of Clariant, said, “We are pleased to announce the agreement with Heubach and SK Capital to sell our pigments business. We are confident that with Heubach and SK Capital we have found the right new owners for this business, for our customers, our colleagues and our other stakeholders.”
The closing of the transaction is subject to customary conditions and approvals and is expected to occur in the first half of 2022.
Heubach is a global manufacturer of organic, inorganic and non-toxic corrosion protection pigments with four global production sites and approximately 1,000 employees.
Clariant Pigments is a worldwide supplier of organic pigments, pigment preparations and dyes, operates 13 global production sites and employs around 1,900 people.