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.