Clariant bidding to acquire Süd-Chemie AG

18-Feb-11

Clariant is bidding to acquire Süd-Chemie AG in a €2 bln (US$2.67 bln) deal with a particular interest in the German chemical company's catalyst and adsorbents businesses, as per Plasticstoday.com. In a presentation to analysts, Clariant called the catalyst and adsorbent units "attractive, high margin businesses" that provide "future technologies with high long-term growth potential." Clariant said that the acquisition, which is expected to close in April, would expand expands its exposure to global megatrends; strengthen technology, R&D, and innovation capabilities; and contribute high quality of earnings. Adsorbents, used in food, plastic additives, and water-based suspensions, have seen compound average growth in sales over the last five years of 7.1%, with an EBITDA margin of 13.5%. Süd-Chemie will be integrated into Clariant's decentralized organization structure as separate business units. The company has approximately 6500 employees in 40 countries. It generates 40% of its sales in Europe, followed by Asia Pacific/Middle East (32%), Americas (20%), and Africa (8%). Clariant has reached an agreement with the majority shareholder, One Equity Partners, which has a 50.4% stake in Süd Chemie, as well as the family shareholders, who hold a roughly 46% share. In the deal, Clariant will acquire around 95% of the outstanding shares, paying One Equity Partners €121 (US$161) per Süd-Chemie share. The company said the majority of the Süd-Chemie family shareholders will swap their shares into Clariant shares at a ratio of 1:8.84.