Specialty chemicals maker Clariant said Monday that “a final milestone” was reached in its portfolio transformation as it completed the sale of its Pigments business to a consortium of SK Capital Partners and Heubach Group.

The transaction has a base enterprise value of CHF 805 million (about $879 million), though the figure is subject to closing accounts adjustments. Clariant also could also receive a CHF 50 million (about $54 million) payment based on the business’ 2021 financial performance.

“The Pigments divestiture concludes Clariant’s transformation into a high-value specialty chemical company, allows us to invest in profitable growth in our most attractive segments and to address the increasing demand for more sustainable products,” Conrad Keijzer, the chief executive officer of Clariant, said in a company release. “We are convinced that the Heubach and SK Capital consortium is the best owner of the Pigment activities and I wish our former colleagues all the best in their new environment. Clariant looks forward to participating in the group’s further development as a shareholder.”

After rolling over CHF 115 million (about $125 million), Clariant will hold on to a 20% stake in the new holding company. The company plans to use proceeds from the deal to finance growth projects in its core business areas.

Powder & Bulk Solids reported last September that Merck KGaA of Darmstadt, Germany opened a new production line for silica-based effect pigments at its manufacturing site in Gernsheim, Germany. The company invested about €28 million (around $32.8 million) to increase production of silicon dioxide flakes, which is used as a substrate in its Colorstream and Xirona product ranges of automotive coatings and color cosmetics.