Kemira has no plans to acquire paper chemicals division of Swiss-based Clariant, company says; Clariant looking to sell its textile chemicals, paper specialties and emulsions, and detergents & intermediates units
STOKE, United Kingdom
October 11, 2012
– Finnish chemicals company Kemira Oyj (HEL:KRA1V) has no plans to acquire the paper chemicals division of Swiss sector player Clariant AG (VTX:CLN), Anna-Kaisa Sakkine, spokeswoman of the Helsinki-based company, told Reuters on Thursday.
In June, the Swiss specialty chemicals manufacturer said it would sell three of its units, namely Textile Chemicals, Paper Specialties and Emulsions, Detergents & Intermediates, or look for joint venture partners for the businesses over the next 12 months. Kemira was among the potential investors deemed to be interested in the paper chemical operations, Reuters said.
In August, Reuters cited insiders as saying that Clariant could have difficulties in finding a buyer for the divisions, which it wants to sell under its growth strategy by 2015. As part of the plan, the company aims to start generating over 70% of its sales from products whose demand is unscathed by economic cycles. The chemicals major also targets to boost its EBITDA margin from 13.2% last year to over 17% in 2015 and is also pursuing a return on invested capital (ROIC) above the peer average level.
Citigroup (NYSE:C) is in charge of the sell-off process, with the first divestment seen to take place within the coming six months, the sources said in August.
Target: Clariant's paper chemicals division
Buyer: Kemira Oyj
Vendor: Clariant AG
Type: Corporate acquisition
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