Canadian Plastics

Clariant sells its pigments business to Heubach Group and SK Capital

The combined business will operate under the Heubach name and aims to create a leading global pigments business with annual sales of more than 900 million euros.

June 14, 2021   Canadian Plastics

Material supplier 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 aims to create a leading global pigments business with annual sales of more than 900 million euros (US$1.1 billion).

The transaction values Clariant Pigments at approximately 740 million euros, with an additional consideration of 46 million euros 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.

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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.

“We have been in pigments for more than 200 years,” Heubach CEO Johann Heubach said in a news release. “My late father and I set out to drive consolidation in the pigments industry, and the combination of Heubach and Clariant Pigments is a major milestone in this vision. The fit between Heubach and Clariant Pigments is perfect. The combination of industry leading technologies, a product portfolio serving a wide range of customer requirements and global production and service footprint will give the newly formed Heubach Group the ability to serve our global customer base in the coatings, plastics, inks and specialty applications fields with industry leading products and services.”

At the time of closing of the transaction – which is expected in the first half of 2022 – Clariant will reinvest to become a 20 per cent shareholder alongside Heubach and SK Capital in the ultimate holding company.

The deal is Clariant’s second big sale in the past year: in 2020, it sold its masterbatches unit to Avient Corp. for US$1.4 billion.


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