SK Capital Buys Three of Clariants Businesses for $500M
The divestitures give a year-end boost to chemical company Clariant as it presses ahead with plans to sell two other businesses in 2013
Private equity firm SK Capital Partners won the auction for Clariant’s (SWX: CLN) textile chemicals, paper specialties and emulsions businesses with a $500 million bid.
According to SK managing director Barry Siadat, the firm had been in talks with Clariant since May.
“The discussion preceded the auction process,” Siadat tells Mergers & Acquisitions, adding that he expects the deal to complement SK Capital’s existing position as a supplier to the global fibers market and the U.S. paper industry. The transaction is expected to wrap up by late June.
Clairant, headquartered in Basel, Switzerland, is a specialty chemical company that is divided into 11 business units. The deal is part of a plan to sell five divisions by the end of 2013.
The businesses SK Capital is currently buying generate revenues of about $1.3 billion, while the price tag is 6.3 times estimated 2012 Ebitda.
SK Capital will assume certain pension liabilities in connection with the deal.
The New York and Boca Raton-based firm focuses on the specialty materials, chemicals and healthcare sectors. Its portfolio companies include Aristech Acrylics, Calabrian Corp. and IBA Molecular.
Morgan Lewis & Bockius LLP and Bar & Karrer AG acted as SK Capital’s legal counsel. Jefferies & Co. Inc. served as the firm’s financial adviser, while Homburger AG acted as Clariant’s legal counsel, and Citigroup Global Markets Ltd. served as its financial adviser.
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