Finnish firm, Kemira, a global chemicals company serving customers in water-intensive industries, has signed an agreed to sell its Brazilian iron and aluminium coagulant business to Bauminas Quimica for an undisclosed amount. The deal includes coagulant business related assets, liabilities and personnel of Kemira WaterSolutions Brazil Ltda and shares of Nheel Quimica Ltda as well as its three coagulants manufacturing sites in Brazil (Rio Claro, Araporti and Lages).
The sold businesses have combined reported revenue of approximately Euro 50 million, mainly in Kemira's Municipal & Industrial segment. The transaction is subject to fulfillment of certain conditions and the closing is still expected during the fourth quarter of 2013.
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The transaction proceeds are expected to have a positive impact on Kemira's cash flow at closing. Kemira will undertake a non-recurring write-down related to the transaction of approximately Euro 40 million, impacting Kemira's reported EBIT in the fourth quarter of 2013.
“The divestment of our coagulant business in Brazil is well in line with our focus on profitability improvement and cash flow maximisation in the Municipal & Industrial segment. Kemira's strategy continues to be focused on those businesses and geographies, where we can achieve a sustainable competitive market position in combination with growth. Exiting the coagulants business in Brazil will further improve the EBIT margin in the Municipal & Industrial segment and will have a positive cash flow impact as well. Brazil will remain an important market for Kemira, especially for the chemicals used in the pulp and paper industry,” said Wolfgang Buchele, President and CEO, Kemira.
The sold businesses have combined reported revenue of approximately Euro 50 million, mainly in Kemira's Municipal & Industrial segment. The transaction is subject to fulfillment of certain conditions and the closing is still expected during the fourth quarter of 2013.
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The transaction proceeds are expected to have a positive impact on Kemira's cash flow at closing. Kemira will undertake a non-recurring write-down related to the transaction of approximately Euro 40 million, impacting Kemira's reported EBIT in the fourth quarter of 2013.
“The divestment of our coagulant business in Brazil is well in line with our focus on profitability improvement and cash flow maximisation in the Municipal & Industrial segment. Kemira's strategy continues to be focused on those businesses and geographies, where we can achieve a sustainable competitive market position in combination with growth. Exiting the coagulants business in Brazil will further improve the EBIT margin in the Municipal & Industrial segment and will have a positive cash flow impact as well. Brazil will remain an important market for Kemira, especially for the chemicals used in the pulp and paper industry,” said Wolfgang Buchele, President and CEO, Kemira.