Clariant selling its masterbatches business to PolyOne for $1.6 billion
Canadian Plastics
MaterialsClariant’s masterbatches business offers colour and additive concentrates and performance solutions for plastics.
Swiss chemicals maker Clariant is selling its entire masterbatches business to U.S. specialty materials maker PolyOne Corp. for US$1.6 billion.
The deal is expected to close by the third quarter of 2020.
The announcement of the sale caps discussions that have going on between the two companies for the past two months. Clariant had previously been in talks with Saudi Arabia-based chemical giant Sabic to form a high-performance materials joint venture that would have included the masterbatches portfolio, but those talks ended unsuccessfully in July.
“This announcement is a significant milestone on our path to focusing on businesses with above-market growth, higher profitability, and stronger cash generation,” Hariolf Kottmann, Clariant’s executive chairman, said in a Dec. 19 statement. “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.”
Kottmann also said that Clariant is “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.”
The deal with PolyOne comprises two separate transactions: The global masterbatches business is sold in a deal valued at US$1.6 billion; and separately, the sale of Clariant’s masterbatches business in India has been approved by Clariant Chemicals (India) Ltd.’s board of directors, and is valued at approximately US$60 million.
The closing of both transactions is subject to customary closing conditions and regulatory approvals.
Clariant’s masterbatches business offers colour and additive concentrates and performance solutions for plastics.