Clariant sells part of India business for Rs 3,029 cr

Clariant Chemicals (India) on Thursday said that it has sold its textile, chemicals, paper specialties and emulsions businesses to US-based SK Capital for about Rs 3,029 crore.

Clariant India, part of Swiss specialty chemical giant Clariant AG, also sold its research and development centre, sales and marketing wing, production plants and sites to private investment firm S K Capital, which focuses on the specialty materials, chemicals and healthcare sectors.

"The total consideration of the sale amounts to approximately CHF 502 million, out of which approximately 460 million in cash, equivalent to 6.3 times the estimated full year 2012 recurring EBITDA of those businesses. The divestment has been approved by the Boards of both companies," Clariant AG said in a statement on its website.

Subject to regulatory approvals, the transaction is expected to close by the end of the second quarter of 2013, it added.

In a filing to the BSE, Clariant Chemicals (India) said "SK Capital has agreed to purchase the business units textile chemicals, paper specialties and the business line emulsions from Clariant."

This will include the transfer of the whole research and development, applications, sales and marketing organisation along with production plants and sites worldwide, it added.

Clariant Chemicals (India) has production facilities for manufacturing textile chemicals, paper specialties and emulsion products at its Roha (Maharashtra) plant.

The company is into specialty chemicals and is a leading player in pigments, textile chemicals, leather chemicals and biocides for paints in India.

It had reported net sales of Rs 267.08 crore and net profit of Rs 16.75 crore for the quarter ended September 30, 2012.