Swiss specialty chemical giant Clariant AG has agreed to sell global business units - textile chemicals, paper specialties and the business line emulsions and its Indian business to US-based private equity firm SK Capital for around $550 million (Rs 3014 crore).
The Indian subsidiary- Clariant Chemicals (India) Ltd has achieved a revenue of Rs 979 crore last year. It has production facilities for manufacture of textile chemicals and produces paper specialties and emulsion products at its Roha plant. "The decision of Clariant to divest its business in India will be subject to appropriate approvals under the Companies Act, 1956 and these will be initiated after approval of Board of Directors," said a company statement.
On Thursday, shares of Clariant Chemicals (India) Ltd went up 2.01 per cent to close at Rs 635.25 on Bombay Stock Exchange.
The deal involves the sale of entire R&D, applications and sales & marketing organisation, along with the production plants and sites worldwide. New York-based SK Capital has its focus on specialty materials, chemicals and healthcare sectors.
Hariolf Kottmann, CEO, Clariant said, “By the end of 2013, Clariant will be an even more profitable company than today, generating a majority of sales in noncyclical growth businesses.”
