Clariant plans acquisition of Süd-Chemie

Published: 16-Feb-2011

Turns 2009 net loss into net income of CHF180m

Clariant, a Swiss manufacturer of specialist chemicals, plans to acquire Süd-Chemie, a Germany based provider of process catalysts and adsorbents, for CHF2.5bn (€2bn).

As part of the planned transaction, which is subject to clearance by the appropriate authorities, Clariant has come to agreements with majority shareholder One Equity Partners (50.4%) and the family shareholders (approximately 46%). As a result, Clariant will acquire slightly more than 95% of the outstanding shares.

With around 6,500 employees in 40 countries, Süd-Chemie also has a strong r&d pipeline in new materials such as lithium-ion batteries and biotechnology (technology for the production of second-generation bioethanol).

Süd-Chemie’s turnover in 2010 was €1.2m, with EBITDA of €191m.

‘We are convinced that Süd-Chemie is the right strategic fit for Clariant,’ said Clariant’s chief executive Hariolf Kottmann. ‘It complements our portfolio with high growth businesses, less cyclicality and it provides Clariant with access to new attractive market segments.’

Clariant, based in Muttenz, said it had completed its restructuring process and increased sales in 2010 by 8% to CHF7.1bn. The highest growth rates were in Europe and North America.

Net income was CHF191m compared with a net loss of CHF194m in 2009.

In 2011, Clariant expects growth to come mainly from emerging markets in Asia/Pacific and Latin America.

‘2010 marks a milestone in Clariant’s history,’ said Kottmann. ‘The extensive restructuring programme of the last two years has been successfully completed. All targets defined at the beginning of the restructuring period have been achieved.’

He added that Clariant now has ‘an above sector average return on invested capital, a good cash flow generation and a strong balance sheet’.

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