Clariant sells Masterbatches business for 1.6 billion

Specialty chemical company, Clariant has agreed to sell its Masterbatches business for approximately USD 1.6 billion to PolyOne, a global provider of specialised polymer materials and services.

Clariant’s Masterbatches business offers colour and additive concentrates and performance solutions for plastics. It aims to enhance the market appeal or end-use performance of plastic products, packaging or fibres, and in the financial year for 2018, the total Masterbatches business generated sales of around CHF 1.181 billion.

The transaction to PolyOne values the Masterbatches business at USD 1,560 million, representing c. 12.2 times the last twelve months reported EBITDA (ending September 2019) on a cash and debt free basis. The transaction is anticipated to be completed by the third quarter of 2020.

Hariolf Kottmann, executive chairman of Clariant said: “This announcement is a significant milestone on our path to focusing 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.”

“As announced, we are confident that we will execute the remaining divestment of our Pigments business in 2020 in order to build the new, more focused and stronger Clariant by 2021,” he added.

All proceeds from the intended divestments of Clariant’s non-core businesses will be used to invest in innovations and technological applications within the core business areas, in order to strengthen Clariant’s balance sheet and to return capital to shareholders.