Clariant makes bid to acquire Süd-Chemie
Looking for future technologies with high growth potential
Clariant AG says it is planning to acquire a controlling majority in Süd-Chemie AG and has signed a contract with the majority shareholders.
The deal is still subject to clearance but Clariant has come to agreements with majority shareholder One Equity Partners (50.4%) and family shareholders (around 46%). Clariant would therefore acquire slightly over 95% of the outstanding shares. The total value of the transaction would be €2bn (CHF2.5bn).
Süd-Chemie has two stable and profitably growing business units that hold a leading global position in the areas of process catalysts and adsorbents. It also has a strong R&D pipeline for new business areas with substantial growth potential, including biotechnology. It has around 6,500 employees in 40 countries.
Preliminary 2010 figures put Süd-Chemie turnover at €1,225m and EBITDA at €191m, with EBITDA margin for the year at 15.6%1.
“We are convinced that Süd-Chemie is the right strategic fit for Clariant. It complements our portfolio with high growth businesses, less cyclicality and it provides Clariant access to new attractive market segments. Süd-Chemie will further drive our profitable growth forward in the coming years”, says Clariant ceo Hariolf Kottmann. “The planned acquisition also offers clear advantages for both companies as our investment will strengthen our research in future markets such as new materials and biotechnology in a focused way”, said Kottmann.
Clariant has also announced that its own sales for 2010 were CHF7.120bn, compared to CHF6.614bn in 2009, representing an increase of 13% in local currency and 8% in Swiss francs. The double-digit sales growth in local currency is attributed to the robust global economic growth supported by restocking activities in parts of the portfolio in the first half of the year. All regions reported double-digit sales growth in local currencies, and in the course of the year, demand returned to normal seasonal patterns, with lighter demand during the summer months and a slowdown in industrial production towards the end of the year.
Having completed a restructure in 2010, Clariant says the Süd-Chemie transaction supports its new strategic direction towards profitable growth. In addition to continued improvement in the profitability of the existing portfolio and a focus on innovation and growth in emerging markets, the plan is to further strengthen the portfolio through further investments in future markets and technologies.
