Swiss chemicals company Clariant sells India unit to US PE firm SK Capital for $550 million

MUMBAI: Swiss chemicals company Clariant has sold its textile chemicals, paper specialities and emulsions businesses, including its Indian subsidiary, to US-based private equity firm SK Capital for $550 million, or about Rs 3,020 crore.

"The deal will include transfer of the whole R&D, applications, sales and marketing organisation along with production plants and sites worldwide," Clariant India said in a statement to stock exchanges.

The worldwide acquisition by SK Capital is expected to be completed by the second quarter of 2013. Clariant India's market cap is around 1,700 crore and its shares have seen a steady rise over the past one month in anticipation of this deal. Clariant India's shares closed 2% up at 635.25 on the Bombay Stock Exchange ( BSE) on Thursday.

"I am pleased that we are able to execute this divestment faster than originally expected. By the end of 2013, Clariant will be an even more profitable company than today, generating a majority of sales in non-cyclical growth businesses," Clariant's global chief executive Hariolf Kottmann said.

Clariant Chemicals (India) has production facilities for manufacture of textile chemicals and produces paper specialties and emulsion products at its Roha plant.

The Swiss firm said that it would focus on markets with strong growth rates and on businesses that have a "competitive position".

It will continue to look for strategic partners for its leather services and detergents and the intermediates business, the company said.