ashAshland Inc. (NYSE: ASH) and Clariant has announced they have completed the previously announced sale of their joint venture, ASK Chemicals GmbH headquartered in Hilden, Germany, to investment funds affiliated with Rhône, a London and New York-based private equity investment firm. The enterprise value of the transaction, before debt and assumed liabilities, amounts to €257 million. After adjusting for debt and assumed liabilities, total pre-tax proceeds to the sellers were €149 million, which includes €128 million in cash and a €21 million buyer note. Proceeds will be split evenly between Ashland and Clariant under terms of the 50/50 joint venture.

With 1,800 employees in 25 countries, ASK Chemicals is a leading foundry chemicals manufacturer. Its portfolio encompasses an exceptionally broad and innovative range of foundry resources such as binders, coatings, feeders, filters and release agents, as well as metallurgical products including inoculants, inoculation wires and master alloys for iron casting. In 2013, ASK Chemicals generated annual revenues of €513 million.

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  • About

    About Ashland
    In more than 100 countries, the people of Ashland Inc. (NYSE: ASH) provide the specialty chemicals, technologies and insights to help customers create new and improved products for today and sustainable solutions for tomorrow. Our chemistry is at work every day in a wide variety of markets and applications, including architectural coatings, automotive, construction, energy, food and beverage, personal care, pharmaceutical, tissue and towel, and water treatment. Visit ashland.com to see the innovations we offer through our four commercial units - Ashland Specialty Ingredients, Ashland Water Technologies, Ashland Performance Materials and Valvoline.

    About Rhône and its affiliates
    Rhône, established in 1996, is a global private equity firm with a focus on investments in market leading businesses with a pan-European or transatlantic presence and expansion prospects. Rhône's investment philosophy includes the development of strong, strategic partnerships with the companies in which it invests. Rhône has offices in London and New York and currently holds investments in a diversified portfolio of companies, including investments in the chemicals, consumer products, food, industrial, materials, mining and shipping industries.

  • Contacts

    Investor Relations:
    Jason Thompson         
    +1 (859) 815-4454
    jlthompson@ashland.com

Published in European News

new logoClariant, a world leader in specialty chemicals, and Ashland Inc. has announced that they have entered into a definitive agreement to sell their joint venture, ASK Chemicals headquartered in Hilden, Germany, to investment funds affiliated with Rhône, a London and New York-based private equity investment firm.

The enterprise value of the transaction before debt and assumed liabilities amounts to CHF 310 million (EUR 257 million). After adjusting for debt and assumed liabilities, total pre-tax proceeds to the sellers will be approximately CHF 180 million (EUR 149 million), which includes CHF 155 million (EUR 128 million) in cash and a CHF 25 million (EUR 21 million) buyer note. Proceeds will be split evenly between Ashland and Clariant under terms of the 50/50 joint venture.

The transaction is expected to close during the third quarter 2014 and is subject to customary closing conditions, including regulatory approvals.

With 1,800 employees in 25 countries ASK Chemicals is a leading foundry chemicals manufacturer. Its portfolio encompasses an exceptionally broad and innovative range of foundry resources such as binders, coatings, feeders, filters and release agents, as well as metallurgical products including inoculants, inoculation wires and master alloys for iron casting. In full-year 2013 ASK Chemicals generated revenues of EUR 513 million.

"The divestment of our stake in ASK Chemicals is part of our continuous active portfolio management to reallocate capital towards our more profitable growth areas," said Hariolf Kottmann, CEO of Clariant. "In the joint venture we have successfully combined the activities of Ashland and former Süd-Chemie businesses. Now we release it to a new owner who will focus on growth perspectives."

"The sale of Ashland's equity interest in ASK Chemicals will allow us to focus on our core specialty chemicals business as we reposition the company for sustained sales and profit growth," said James J. O'Brien, Ashland chairman and chief executive officer. "At the same time, the divestiture will give ASK Chemicals an opportunity for new investment as it works to build on its position as a leading foundry chemicals manufacturer."

Rhône commented: "We are proud to succeed Ashland and Clariant in the stewardship of ASK Chemicals. We are excited to be partnering with ASK Chemicals' management team, and look forward to working with them to further develop the business in this new phase of ASK's expansion, leveraging on its leading technology platform, long standing customer relationships, global manufacturing base and talented personnel."

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Published in European News

new logoClariant, a world leader in specialty chemicals, today announced the closing of the sale of its Detergents & Intermediates business to International Chemical Investors Group (ICIG). The total consideration of the sale amounts to CHF 58 million, out of which CHF 20 million in cash became due at closing. Worldwide, 660 employees were transferred from Clariant to the new ICIG business, which from now on will operate under the WeylChem brand umbrella.

"The successful sale promotes the repositioning of the company's portfolio", says Hariolf Kottmann, CEO of Clariant. "As part of Clariant's profitable growth strategy we will focus on markets with strong growth rates and good perspectives for the future and on businesses with a competitive position, resulting in solid pricing power."

In this context, the company has already divested the Business Units Textile Chemicals, Paper Specialties and the Business Line Emulsions on September 30, 2013. The divestment of the Business Unit Leather Services to Stahl Holdings B.V. is expected to close in the next few months.

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Published in European News

new logoClariant, a world leader in specialty chemicals, has signed an agreement to divest its Detergents & Intermediates business to International Chemical Investors Group (ICIG). The total consideration of the sale amounts to CHF 58 million, out of which 20 million will be in cash at closing. The transaction is subject to regulatory approvals.

"Having successfully closed the sale of the first three businesses two weeks ago, the divestment of Detergents & Intermediates marks the next step in streamlining our portfolio", CEO Hariolf Kottmann said. "Once completed, the repositioning of the portfolio will allow the group to focus on exploiting its strong market positions and intensify growth by focusing on customers and innovation."

"The Clariant Detergents & Intermediates business ideally complements our fine chemicals and custom manufacturing operations,  providing also the basis for a new detergents platform together with our U.S. hydrotropes &  batch sulfonation business of Nease Corp." says ICIG Managing Director Achim Riemann.  "Together with the recently announced  acquisition of Allessa we expect to realize signifcant synergies in the Rhein Main region, expecting to grow ICIG combined sales to more than  EUR 1.2 billion", says ICIG Managing Director Patrick Schnitzer.

Repositioning the company's portfolio is an essential part of Clariant's profitable growth strategy. To achieve the targets set for 2015, Clariant will focus on markets with future perspectives and strong growth rates and on businesses that have a competitive position, resulting in strong pricing power. In this context, the company has divested the Business Units Textile Chemicals, Paper Specialties and the Business Unit Emulsions on 30 September 2013 and signed an agreement for the Business Unit Detergents & Intermediates. With the planned divestment of the Business Unit Leather Services, the repositioning of Clariant's portfolio will be completed in the coming quarters.

In 2012, the Detergents & Intermediates business generated around CHF 280 million in reported sales. The business employs around 660 employees in Europe, predominantely in Germany and France.

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  • About

    Clariant is a globally leading specialty chemicals company, based in Muttenz near Basel/Switzerland. On December 31, 2012 the company employed a total workforce of 21,202. In the financial year 2012, Clariant recorded sales of CHF 6.038 billion for its continuing businesses. The company reports in four business areas: Care Chemicals, Catalysis & Energy, Natural Resources, and Plastics & Coatings. Clariant's corporate strategy is based on four pillars: managing businesses for profitability, research & development and innovation, growth in emerging markets, and repositioning of the portfolio.

    International Chemical Investors Group (ICIG) is a privately owned industrial holding company focusing on mid-sized chemicals and pharmaceutical businesses. Since inception in 2004, ICIG has acquired 20 businesses, all of which have origins in major global chemical or pharmaceutical corporations and are independently managed. ICIG companies currently have more than 3,500 employees operating 20 manufacturing facilities in Europe and the United States with total sales of approximately €850 million. For more information about International Chemical Investors Group: www.ic-investors.com

  • Contacts

    Corporate Media Relations

    Kai Rolker

    Phone +41 61 469 63 63

    kai.rolker@clariant.com

    Stefanie Nehlsen

    Phone +41 61 469 63 63

    stefanie.nehlsen@clariant.com

     

    ICIG

    Sibel Cumcu

    Phone +49 69 506 999 0

    info@ic-investors.com

     

    Investor Relations

    Ulrich Steiner

    Phone +41 61 469 67 45

    ulrich.steiner@clariant.com

    Siegfried Schwirzer

    Phone +41 61 469 67 49

    siegfried.schwirzer@clariant.com

Published in European News

new logoClariant, a world leader in specialty chemicals, today announced the closing of the sale of its Textile Chemicals, Paper Specialties and Emulsions businesses to SK Capital. Starting 1 October 2013, the three former Clariant businesses are now operating under the name Archroma. After some adjustments for working capital and for the lower operational performance of some parts of the businesses, the total purchase price consideration of the transaction will amount to approximately CHF 425 million, mainly consisting of a cash inflow of CHF 355 million and the transfer of pensions and other liabilities. Worldwide, 2'900 employees will transfer to Archroma.

"The successful closing of the transaction is the next step in repositioning Clariant's portfolio towards higher growth, higher profitability businesses", said CEO Hariolf Kottmann. "Today, I would like to express my appreciation and thanks to all employees of the three businesses for their work. We wish them all the best and success in the new company."

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  • About

    Clariant is a globally leading specialty chemicals company, based in Muttenz near Basel/Switzerland. On December 31, 2012 thecompany employed a total workforce of 21,202.

    In the financial year 2012, Clariant recorded sales of CHF 6.038 billion for its continuing businesses.

    The company reports infour business areas: Care Chemicals, Catalysis & Energy, Natural Resources, and Plastics &Coatings. Clariant’s corporate strategy is based on four pillars: managing businesses for profitability, research & developmentandinnovation, growth in emerging markets, and repositioning of the portfolio.

  • Contacts

    The Clariant Investor Relations Team

    Dr. Ulrich Steiner, Head of Group Communications & Investor Relations
    Tel. +41 61 469 67 45, Mobile +41 79 297 27 07
    ulrich.steiner@clariant.com

    Dr. Siegfried Schwirzer, Deputy Head Investor Relations
    Tel. +41 61 469 67 49, Mobile +41 79 718 45 98
    siegfried.schwirzer@clariant.com

    Marco Ferraro, Investor Relations Officer
    Tel. +41 61 469 64 11, Fax: +41 61 469 67 67
    marco.ferraro@clariant.com

    Edith Schwab, Investor Relations
    Tel: +41 61 469 67 48, Fax: +41 61 469 67 67
    edith.schwab@clariant.com

    Mirjam Grieder, Investor Relations
    Tel: +41 61 469 67 66, Fax: +41 61 469 67 67
    mirjam.grieder@clariant.com

Published in European News
  • Former textile, paper and emulsions businesses of Clariant were acquired today by SK Capital Partners

archroma life ppwArchroma is delighted to announce its official launch today as a newly formed global color and specialty chemicals company that comprises the former Textile Specialties, Paper Solutions and Emulsion Products businesses of Clariant. To be combined into a single entity at close, Archroma will continue to deliver specialized performance and color solutions to the textile, paper, adhesives, coatings and construction industries. The three businesses were acquired today by SK Capital Partners, a U.S. based private investment firm with a disciplined focus on the specialty materials, chemicals and healthcare sectors.

To be led by CEO Alexander Wessels, the newly recruited senior leadership team will seek to generate a renewed sense of purpose and vision, and will work closely with the current heads of the three businesses acquired from Clariant, whose unique understanding of their markets and customers has advanced the strategic positioning of Archroma.

“We’re open for business with a new name and a financially strong and knowledgeable parent who believes in our technology, brand and leading market positions,” says new CEO Alexander Wessels. “I’m proud to join a company with a 120-year long history of providing a portfolio of world-class products and driven by a team of highly talented people who bring fresh thinking and ideas to an industry hungry for innovation.” 

“The transaction closing comes after a thorough preparation to ensure a seamless transition of the businesses from Clariant to new ownership. In addition, we believe that realigning the three businesses into a single integrated, market-focused and dynamic company will benefit both our employees and our customers.”

Wessels added, “With SK Capital, we strengthen our business and further improve our offering to our customers. We have all the right cards in our hand. We know who we are and what we offer to our customers – innovation, performance, technical expertise, quality, reliability, a global footprint and a commitment to sustainability."

Archroma will be headquartered in Switzerland along with the management team of Archroma’s Paper Solutions Business. The Textile Specialties Business will be managed from Singapore and the Emulsion Products Business from Brazil.

The company has a new name and new ownership, yet one thing that has not changed is the passion and commitment to excellence. 

Customer and market focus
Archroma is favorably positioned in multi-billion-dollar end markets, from fibers and fabrics to paper and packaging to coatings, adhesives and construction; and will continue to develop color and performance materials to serve its customers’ ever changing needs.

  • Textile Specialties: From fiber to finish, Archroma's Textile Specialties Business plays a key role throughout the entire textile supply chain, with special chemicals for pre-treatment, dyeing, printing and finishing of textiles. Product packages enhance the properties of apparel and other textiles in applications as diverse as high fashion, home textiles and special technical textiles.
  • Paper Solutions: Archroma's Paper Solutions Business provides expertise in the management of whiteness, coloration, special coatings and strength for all kind of papers. By combining our focused product range with the application services of our paper experts around the globe, we enhance both the optical and functional properties of paper.
  • Emulsion Products: From paints, adhesives and construction to the textile, leather and paper industries, Archroma’s Emulsion Products Business provides solutions for a wide range of applications. Customers have been witness to the outstanding success of Archroma’s Mowilith® emulsions since its first patent was obtained in 1912.

Archroma offers its global customers a reliable and long term commitment to developing new product solutions, application development, process technologies and services with world class quality and technical support. 

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  • About

    Archroma, a new name with a trusted heritage
    Pronounced Ahr-kroh-mah, the name of the company is reminiscent of the words “arch” and “chroma”. It represents the commitment from 3,000 employees, 25 production sites, 35 countries and 3 businesses to come together in a new company to better meet customer needs. It also confirms the company’s position as a global leader in color and specialty chemicals with strong market insights and a rich heritage of materials excellence and expertise.

    Mowilith® Registered trademark 
    © 2013 Archroma

  • Contacts

    Muriel Werlé 
    Archroma 

    t +65 6643 1741 or +65 6866 7422
    muriel.werle@archroma.com

Published in European News

new logoClariant Chemicals (India) Ltd's board of directors on Thursday approved the sale of textile chemicals, paper specialities and emulsion businesses by way of a slump sale on an "as is where is basis" to Archroma India Pvt Ltd for Rs 209.15 crore.

Archroma India is owned by S.K. Spice Sarl, an affiliate of S.K. Capital Partners, a US-based private Investment Firm.

The board also cleared relocation of the masterbatches plant from Kolshet, Thane to Renaissance Industrial & Warehousing Complex at Vashere in Thane district to be operational from December, 2013, the company said in a filing with the stock exchanges.

The shares of the company were trading at Rs 513, up by Rs 7.15, on the BSE.

Published in Asian News

Clariant, a world leader in specialty chemicals, launches the world's most highly-concentrated, urea-free liquid optical brightening agent (OBA) for printing and writing papers. New disulphonated Leucophor® ACK contains no environmentally-harmful additives, decreases OBA requirements for papermakers, and lowers transport costs and carbon footprint.

clariant optical bright

Clariant launches Leucophor® ACK, raising the benchmark for environmentally-focused optical brighteners.
(Photo: Clariant)

Leucophor ACK is an ultra-concentrated aqueous solution specially designed to give state-of-the-art effectiveness while satisfying the most demanding environmental requirements. The unique, patented, new generation urea-free optical brightener is primarily intended for stock application in sized and unsized papers.

Free of additives such as urea and glycols, the REACH-registered brightener contributes less to the overall nitrogen and COD content of backwaters and effluent. Leucophor ACK fulfils the requirements of Nordic Swan, EU Eco Flower and BfR.

From an efficiency perspective, papermakers look to use less active agent to achieve good brightness or whiteness for their application. The highly substantive, ultra-concentrated stilbene brightener exhibits impressively high build up, even at extremely low concentrations, thanks to its strength and high affinity to the paper fiber. Compared to current disulpho chemistries, Leucophor ACK shows improved performance on stock addition to both virgin and recycled fiber, and in pigmented coating applications, particularly those containing PVOH as a secondary binder. It also allows greater flexibility and higher solids’ contents in CMC and starch/CMC pigmented coatings.

The OBA’s higher strength supports fewer deliveries and reduced storage volumes for paper mills. It therefore generates better sustainability through savings in product quantity and logistics, plus a lower transport carbon footprint, as well as easier handling.

Leucophor ACK liquid is also particularly suitable for unsized tissue, neutral-sized and heavy loaded papers, and is one of the most effective OBAs for use in wood-containing grades, such as improved newsprint and SC grades.

“Sustainability is a clear trend, but at the same time papermakers do not want to sacrifice the technical and economic advantages of their operations. Leucophor ACK liquid satisfies an important need in the market, building sustainability on to the cost performance and ease-of-handling which customers have come to expect from Leucophor products,” comments Andrew Jackson, Product Manager, Clariant, Business Unit Paper Specialties.

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  • About

    Clariant is a globally leading specialty chemicals company, based in Muttenz near Basel/Switzerland. On December 31, 2012 the company employed a total workforce of 21,202. In the financial year 2012, Clariant recorded sales of CHF 6.038 billion for its continuing businesses. The company reports in four business areas: Care Chemicals, Catalysis & Energy, Natural Resources, Plastics & Coatings. Clariant’s corporate strategy is based on four pillars: managing businesses for profitability, research & development and innovation, growth in emerging markets, and repositioning of the portfolio.

    ® TRADEMARK OF CLARIANT REGISTERED IN MANY COUNTRIES.

  • Contacts
    Reader Enquiries
     
    Clariant International Ltd
    Rothausstrasse 61
    4132 Muttenz 1
    Switzerland
    Tel  +41 61 469 6742
    Fax  +41 61 469 5901
    Web  www.clariant.com

Published in Featured Products

new logo1Clariant International Ltd, a world leader in Specialty Chemicals, and Wilmar International Limited, a leading Asian agribusiness group, have received the relevant merger clearances for the establishment of their 50-50 joint venture called "the global amines company", which is now in operation. 

The global amines company will be the global platform for production and sales of fatty amines and selected amines derivatives. The joint venture will be headquartered in Singapore with global sales, distribution and production affiliates. 

The joint venture has its own production capacities for amines in Germany and China, contributed by Clariant and Wilmar respectively, as well as access to amines capacities in Brazil and Mexico. For amine derivatives, the global amines company has access to around a dozen Multi-Purpose-Plants of Clariant all around the globe. Leveraging on the global reach and the individual strengths of Wilmar and Clariant, the global amines company will seek significant growth opportunities - in particular, in the markets of Industrial Care, Home Care and Personal Care. 

"The combination of Wilmar's integrated agribusiness model based on renewable materials and its strong position in oleochemicals with Clariant's technical experience and market presence in the downstream amines and derivative sector will position the global amines company as the first fully integrated and competitive player along the value chain of amines," states Stephan Lynen, General Manager of the global amines company.

Leveraging on their track record of technical and commercial reliability, both partners are dedicated to position the global amines company as a new leading player in the amines and amine derivatives market.

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Published in Asian News

new logo1The Clariant Pakistan Limited — a quiet unit on the chemical sector of the KSE — has been in the spotlight for its decision to spin-off all but three of the 11 business units to a private company, the Clairant Chemical (Pvt) Limited.

The sale would fetch the listed company Rs2.5 billion, representing a hefty premium over the book value of Rs1.35bn.

The news was warmly greeted at the stock exchange, where the market price of the share hit a few ‘upper circuits’ to close at Rs316.90 on Friday.

At that price and the total outstanding shares at 34 million, Clariant Pakistan Limited (CPL) is valued at Rs10.7bn. Three-quarters of the shares in the company are held by Cliant International, the parent company.

The scope of company’s operations is fairly widespread. It deals in textile chemicals, paper specialties, emulsions, masterbatches, leather services, pigments, additives, industrial and consumer specialties, oil and mining, detergents and intermediates and catalyst businesses.

Calculations by analyst Zeeshan Afzal at Topline Securities suggests that in the last five years, the company posted sales and profitability in the combined annual growth rate (CAGR) of 11.4pc and 20.4pc, respectively. In 2012, the company earned profit-after-tax (PAT) at Rs1.18bn, translating into earning per share (eps) at Rs34.50, which represented considerable improvement over the PAT at Rs0.78bn and eps at Rs22.80 the year earlier.The CPL would retain textile chemicals, paper specialties and emulsions.

At an extraordinary general meeting on July 11, the company would seek shareholders’ approval of the proposed deal.

Given the huge benefit that would accrue to the company, even the small shareholders are likely to willingly extend their blessings.

According to the disclosed plans, the sale would be followed by the acquisition of 75pc majority stake in CPL by SK Capital from Clariant International Limited. SK Capital is a private investment firm focusing on specialty materials, chemicals and healthcare sectors and seeks buyouts, recapitalisations and growth equity investments.

Market sources said that the development was anticipated as SK Capital had announced in December last year that it had signed asset and share

purchase agreements to acquire the textile chemicals, paper specialties, and emulsions businesses of Clariant International.

Some people have expressed surprise over the CPL decision to divest eight of the ten business units. But those in the knowledge of things affirm that the holding company Clariant International was globally in the process of divesting its textile chemicals, paper specialties, and emulsions businesses to SK Capital.

The CPL also intends to sell its master batches, leather pigments, additives and other businesses along with the land property in Lahore and Karachi to Clariant Chemicals (Pvt.) Ltd.

“In 2012, those assets contributed about 23pc to the profits”, says analyst Zeeshan.

As part of the proposed deal, CPL shall lease back the land from Clariant Chemicals (Pvt.) Ltd. which is required for the businesses it intends to keep: textile chemicals, paper specialties and emulsions.

Back of the envelope calculations showed that last year, CPL had derived 77pc of the aggregate profit, amounting to Rs910m, from those three segments.

Published in Asian News
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