Private equity firm SK Capital Partners is preparing to divest Archroma, a business it acquired from Clariant in 2013, say reports citing people familiar with the situation. Trade buyers and private equity firms are preparing to bid, according to Reuters.
Archroma was formed in October 2013 from the textile, paper, and emulsions businesses of Clariant, itself formed in 1995 as a spin-off from Sandoz. In 1997, Clariant acquired the specialty chemicals business of the former Hoechst, which now forms a key part of Archroma. The company has since grown organically and through acquisitions. In May 2014, it bought a 49% stake in M. Dohmen (Korschenbroich, Germany), which specializes in producing textile dyes and chemicals for the automotive, carpet, and apparel sectors, and in July 2015 it bought the global textile chemicals business of BASF.
Synthomer (Harlow, United Kingdom) and the private equity firms Apollo Global Management and Advent International are the likely contenders for Archroma, Reuters says, adding that SK Capital could also retain a stake in the business under its new owner. Archroma has sales of around $1.3 billion and adjusted EBITDA of $180 million. It operates 25 facilities around the world employing 3,000 people. The company’s main businesses are textile specialties; packaging and paper specialties; and coatings, adhesives, and sealants. The latter business, Archroma’s smallest segment, competes with Synthomer in water-based synthetic latexes and emulsions.
By Rebecca Coons
Source: Chemical Week
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