Clariant Chemicals sells part of India business to SK Capital for Rs3,029 cr

27 Dec 2012

Clariant Chemicals (India) has sold its textile, chemicals, paper specialties and emulsions businesses to US-based SK Capital for 502 million Swiss Francs (about Rs3,029 crore).

Clariant, a world leader in specialty chemicals, today said it has signed an agreement to divest its textile chemicals, paper specialties and emulsions businesses to SK Capital for a total consideration of approximately CHF 502 million, with approximately CHF 460 million (equivalent to 6.3 times the estimated full year 2012 recurring EBITDA of those businesses) in cash.

''SK Capital has agreed to purchase the business units textile chemicals, paper specialties and the business line emulsions from Clariant,'' the company said in a filing with the Bombay Stock Exchange (BSE).

The boards of both companies have approved the divestment, which is subject to regulatory approvals and Clariant expects the transaction to close by the end of the second quarter of 2013.

The sale includes the transfer of the whole research and development, applications, sales and marketing organisation along with production plants and sites worldwide, it added.

Clariant Chemicals (India) has production facilities for manufacturing textile chemicals, paper specialties and emulsion products at Roha, Maharashtra.