PolyOne to Acquire Clariant Color & Additive Masterbatch Business
Early synergies and innovation opportunities are seen by PolyOne in the forthcoming acquisition of Clariant Masterbatches.
PolyOne Corp., Avon Lake, Ohio, has entered into an agreement with Clariant (U.S. office in Charlotte, N.C.) to purchase its global color and additive masterbatch business. Also, PolyOne has entered into an agreement with Clariant Chemicals India Ltd. to purchase its color and additive masterbatch business (collectively, "the business" or "the acquisition" or "the transaction" has a net purchase price of $1.45 billion). Clariant’s Masterbatches business offers color and additive concentrates and performance solutions that enhance the market appeal or end-use performance of plastic products, packaging or fibers.
The acquisition of Clariant's color and additive masterbatch business has been approved by both companies’ board of directors and is expected to close in mid-2020, subject to the satisfaction or waiver of customary closing conditions, including the receipt of regulatory approvals in various global jurisdictions. Both businesses offer leading portfolios of materials and supporting services that are aligned with the megatrends of the future, including sustainable solutions for alternative energy, reduced material requirements for packaging, improved recyclability and light-weighting. Combined geographic footprint will provide comprehensive, global availability of specialty materials and services for customers around the world.
Said PolyOne’s chairman, president and CEO Robert M. Patterson, "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 leader in color design, additive technologies and sustainable solutions….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. Although we are several years into our specialty journey, we should all view this as a landmark acquisition, with our best days to come."
Clariant's color and additive masterbatch business, which had sales of $1.15 billion for the last twelve months, includes specialty technologies and solutions for high-growth global end markets, such as consumer, packaging, and healthcare. The business includes 46 manufacturing operations and technology centers in 29 countries and approximately 3,600 employees, who will join PolyOne's Color, Additives and Inks segment.
Said Clariant’s executive chairman Hariolf Kottmann, “This announcement is a significant milestone on our path to focusing 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.”
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