Swiss specialty chemicals company Clariant has signed an agreement to sell its complete colour and additives Masterbatches business to PolyOne for $1.6bn.
In a separate deal valued at Rs4.26bn ($59.87m), Clariant Chemicals has also agreed to sell its Indian Masterbatches business.
Clariant executive chairman Hariolf Kottmann said: “This announcement is a significant milestone on our path to focussing on businesses with above-market growth, higher profitability and stronger cash generation.
“After the successful divestment of Healthcare Packaging in October 2019, the agreement to sell Masterbatches is an important step in delivering our strategy defined in 2015 to concentrate on our three core business areas: Care Chemicals, Catalysis and Natural Resources.”
Over the last year, the Masterbatches business, which includes specialty technologies and solutions for the consumer, packaging and healthcare markets, reported sales of $1.15bn.
Clariant includes 46 manufacturing operations and technology centres in 29 countries. Approximately 3,600 of its employees will join PolyOne’s Colour, Additives and Inks business.
The combined geographic footprint of the two businesses is expected to offer comprehensive global availability of specialty materials and services to worldwide customers.
Clariant plans to use the proceeds from the divestments of its non-core businesses to invest in new and technological applications within its core business areas.
PolyOne proposes to use a combination of cash on hand, including capital generated from the recent divestment of its PP&S business to fund the transaction.
In addition, the company intends to use the proceeds from the issuance of senior unsecured notes and around $450m of equity.
Both transactions are subject to customary closing conditions and regulatory approvals.
Source: Chemicals Technology
3M and Dow have announced they are cutting thousands of roles from their global workforces in response to economic pressures. Dow has said it will cut 2,000 jobs across its global workforce (around 5%) in a bid to save US$1bn in 2023. The company says it will also cut costs by shutting down “select assets”, though it did not note where it would halt operations.
Sweden’s state mining firm has discovered what could be Europe’s largest rare earths deposit, and says it could help the bloc reduce its reliance on imports of minerals needed to manufacture clean technologies and meet climate targets.
Henkel and Avantium have been partners since 2019, when Henkel joined the PEFerence consortium. This consortium of partners, coordinated by Avantium, aims to establish an innovative supply chain for FDCA and PEF (polyethylene furanoate).