Clariant Divests Masterbatch Business in $1.5B DealClariant Divests Masterbatch Business in $1.5B Deal

December 19, 2019

3 Min Read
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Swiss specialty chemicals maker Clariant is divesting its Masterbatches business to polymer formulations firm PolyOne in a $1.56 billion transaction to hone its resources on its core businesses, the company announced Thursday.

“This announcement is a significant milestone on our path to focusing on businesses with above-market growth, higher profitability, and stronger cash generation,” Clariant Executive Chairman Hariolf Kottmann, said in a statement. “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.”

The Masterbatches business provides color and additive concentrates and performance solutions to the plastics industry. Clariant said it plans to use funds from the sale to finance innovations and technological applications for its core business areas, improve its balance sheet, and provide a return to shareholders. 

PolyOne is buying the global Masterbatches business for $1.5 billion. The firm will also pay $60 million to acquire Clariant’s Masterbatches business in India. The deal is subject to regulatory approvals and other closing conditions. 

“This is a truly transformational acquisition for both PolyOne and Clariant customers and employees around the world,” said PolyOne President and Chief Executive Officer Robert M. Patterson in a separate press release. “Together, we will benefit from the combined ingenuity, passion, and expertise of two global leaders in color design, additive technologies, and sustainable solutions.”

The transaction is slated to close in the third quarter of 2020. 

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