The Heubach Group, in partnership with SK Capital Partners, have agreed to acquire Clariant’s Pigments Business. The combined business will operate under the Heubach name.
The transaction values Clariant Pigments at approximately $895 million (CHF 805 million), with additional consideration of $56 million (CHF 50 million) contingent on the 2021 financial performance of the business unit. As part of the transaction, Clariant will be reinvesting for a minority stake in the combined business.
Heubach is a global producer of organic, inorganic, and non-toxic anti-corrosive pigments. Clariant Pigments is a global provider of organic pigments, pigment preparations and dyes.
Johann Heubach, chief executive officer of the Heubach Group, noted “We have been in pigments for more than 200 years. 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. We are extremely excited to have gained SK Capital as a partner and we are eagerly looking forward to capitalizing on their expertise in integrating and operating businesses in the global chemical industry. 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.”
Aaron Davenport, a managing director of SK Capital, noted “Clariant Pigments is a premier global colorant solutions provider, and, together with our new partners, the Heubach Group and Clariant, we see a tremendous opportunity to create significant value for all stakeholders.”
Conrad Keiijzer, chief executive officer of Clariant, noted “We are pleased to announce the agreement with Heubach and SK Capital for the sale of our pigments business. We are confident that with Heubach and SK Capital, we have found the right new owners of this business, for our customers, our colleagues and our other stakeholders.”
The Valence Group of Piper Sandler & Co., BofA Securities and Citi served as financial advisors to Heubach and SK Capital. Committed financing for the transaction was provided by BofA Securities and Citi. Lenz & Staehelin AG and Kirkland & Ellis LLP acted as legal counsel to Heubach and SK Capital. Milbank LLP acted as legal counsel to Heubach. Homburger AG acted as legal counsel to Clariant and Deutsche Bank AG served as Clariant’s financial advisor.