SK Capital Partners announced that it has signed asset and share purchase agreements to acquire the Textile Chemicals, Paper Specialties, and Emulsions businesses of Clariant. These global divisions provide brands and 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.
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.”
The transaction is expected to close by the end of the second quarter of 2013.
Morgan, Lewis & Bockius and Bar & Karrer AG acted as legal counsel to SK Capital. Jefferies & Company 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.
SK Capital is a private investment firm with a focus on the specialty materials, chemicals and healthcare sectors
Clariant is an internationally active specialty chemical company.