SK Capital Partners, a US-based private investment firm, announced today that it has signed asset and share purchase agreements to acquire the Textile Chemicals, Paper Specialties, and Emulsions businesses of Clariant (SWX:CLN). These global divisions possess strong brands and leading technologies in dyes, pigments, emulsions and surface active chemicals used in the textile, paper, coatings, construction and adhesive industries. Together, the businesses generate revenues of approximately $1.3 billion, operate from 25 facilities around the world and employ approximately 3,000 employees. The transaction value is approximately $500 million in cash and SK Capital will be assuming certain pension liabilities.
With a disciplined focus on the specialty materials, chemicals and healthcare sectors, SK Capital has significant relevant experience gained through both previous and current investments in the textile, fiber and nylon chemicals sectors, as well as deep knowledge of the end markets served by the businesses. The acquisition is consistent with SK Capital’s strategy of acquiring niche market leaders with strong brands, technologies and underlying growth trends and actively supporting management in building thriving businesses with sustainable competitive advantages.
Barry Siadat, a Managing Director of SK Capital, noted, “We are delighted to partner with the management and employees of these businesses to build upon their strong technology, brand, and leading market positions to more efficiently serve their large and growing global markets and customers. We believe these businesses provide an attractive platform to capitalize on their overlaps in technology, manufacturing, supply chain and logistics.”
"We believed SK Capital was a logical buyer of these businesses because of their strong track record of acquiring global chemicals businesses and their ability to transition non-core divisions of large public companies into strong stand-alone entities," added Clariant CEO Hariolf Kottmann.
SK Capital Managing Director Aaron Davenport added, “This acquisition of three businesses in a single transaction caps a year in which we have announced or closed two other corporate carve outs and a public to private deal. All of these transactions have been within our sectors of focus and are opportunities that we believe can benefit from our focused approach to growth and improvement.”
The transaction is expected to close by the end of the second quarter of 2013.
Morgan, Lewis & Bockius LLP and Bär & Karrer AG acted as legal counsel to SK Capital. Jefferies & Company, Inc. served as financial advisor to SK Capital and provided committed financing to support the transaction. Homburger AG acted as legal counsel and Citigroup Global Markets Limited served as financial advisor to Clariant.
About SK Capital
SK Capital is a private investment firm with a disciplined focus on the specialty materials, chemicals and healthcare sectors. Our integrated, multi-disciplinary team utilizes its industry, operating and investment experience to help transform businesses into higher performing organizations. Located in New York, NY and Boca Raton, FL, we are currently investing from SK Capital Partners III, L.P., a $500 million fund of committed capital. Our portfolio companies generate revenues of over $6.0 billion annually and employ more than 4,000 people.
Please visit www.skcapitalpartners.com for more information about SK Capital.
Clariant is an internationally active specialty chemical company, based in Muttenz near Basel. The group owns over 100 companies worldwide and employed 22,149 employees on December 31, 2011. In the financial year 2011, Clariant recorded a turnover of around CHF 7.4 billion. Clariant is divided into eleven business units: Additives; Catalysis & Energy; Emulsions, Detergents & Intermediates; Functional Materials; Industrial & Consumer Specialties; Leather Services; Masterbatches; Oil & Mining Services; Paper Specialties; Pigments; Textile Chemicals.