PolyOne: Acquisition of Clariant colour and additive masterbatch business
On 19 December 2019, PolyOne Corporation announced that it has entered into an agreement with Clariant to purchase its global colour and additive masterbatch business. In addition, PolyOne has entered into an agreement with Clariant Chemicals India Ltd. to purchase its colour and additive masterbatch business. The combined net purchase price is USD 1.45 billion. The closing of both transactions is subject to customary closing conditions and regulatory approvals and is expected by by mid-2020.
Clariant's colour and additive masterbatch business, which had sales of USD 1.15 billion for the last twelve months, includes speciality technologies and solutions for end markets, such as consumer, packaging, and healthcare. The business includes 46 manufacturing operations and technology centres in 29 countries and approximately 3,600 employees, who will join PolyOne's Color, Additives and Inks segment.
“This will be a truly transformational acquisition for both PolyOne and Clariant customers and employees around the world. Together, we will benefit from the combined ingenuity, passion and expertise of two global leaders in colour design, additive technologies and sustainable solutions,” said Robert M. Patterson, Chairman, President and Chief Executive Officer, PolyOne. “Over the years, we have invested heavily in commercial resources and innovation, emphasising higher-margin speciality business in less-cyclical end markets. With this acquisition and the recent divestiture of our Performance Products & Solutions (PP&S) segment, we now expect over 85 % of pro forma adjusted EBITDA to be generated from speciality applications. The early synergies and EPS accretion certainly underpin the transaction and its initial value financially, but what I am most excited about is the additional upside from the innovation opportunities of our combined businesses,” Patterson added.
Hariolf Kottmann, Executive Chairman of Clariant, 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 on our strategy defined in 2015 to concentrate on our three core Business Areas Care Chemicals, Catalysis and Natural Resources. As announced, we are confident that we will execute the remaining divestment of our Pigments business in 2020 in order to build the new, more focused and stronger Clariant by 2021.”