Clariant’s Masterbatches help improve the market appeal or end-use performance of plastic products, packaging or fibres
PolyOne to acquire Clariant’s Masterbatches business. (Credit: Clariant)
PolyOne has agreed to acquire Clariant’s Masterbatches business in a deal valued at around $1.56bn.
Clariant’s Masterbatches business provides colour and additive concentrates and performance solutions for plastics.
The Masterbatches enables to enhance the market appeal or end-use performance of plastic products, packaging or fibres.
The total Masterbatches business generated sales of around CHF1.181 ($1.20bn) in the financial year 2018.
Clariant’s deal with PolyOne comprises two separate transactions
Clariant’s deal with PolyOne includes two separate transactions. PolyOne agreed to acquire global Masterbatches business in a deal valued at around $1.5bn.
Clariant Chemicals’ (India) board of directors separately approved the sale of Clariant’s Masterbatches business in India for around $60m.
Clariant, the parent company, holds a 51% controlling stake in Clariant Chemicals (India).
Clariant said that the amount will be paid at closing, which is expected in the third quarter of 2020. The closing of both deals is subject to customary closing conditions and regulatory approvals.
Clariant will use the proceeds from the intended divestments of its non-core businesses to invest in innovations and technological applications within the core business areas to improve the company’s balance sheet and to return capital to shareholders.
Clariant’s board of directors is proposing an extraordinary cash distribution of CHF3.00 to the Clariant Annual General Meeting that will take place on 30 March 2020 due to the divestment of the Masterbatches business and the anticipated divestment of the Pigments business by the end of 2020.
The extraordinary distribution of around CHF1bn ($1bn) will be paid out post the closing of the divestment of the Masterbatches business, subject to a positive vote of Clariant’s shareholders.
Clariant executive chairman Hariolf Kottmann said: “This announcement is a significant milestone on our path to focussing on businesses with above-market growth, higher profitability and stronger cash generation.
“After the successful divestment of Healthcare Packaging in October 2019 the agreement to sell Masterbatches is an important step in delivering on our strategy defined in 2015 to concentrate on our three core Business Areas Care Chemicals, Catalysis and Natural Resources.”
In July this year, a newly-formed affiliate of Arsenal Capital Partners has agreed to acquire Clariant’s healthcare packaging business in a deal valued at around CHF308m (£251.7m).