Clariant Divests its Water Treatment Business to South African AECI
Muttenz, February 11, 2014 - Clariant, a world leader in specialty chemicals, today announced that it has signed an agreement to divest the Water Treatment business in Africa to AECI, domiciled in South Africa. The total consideration of the sale amounts to CHF 34 million in cash at closing that is expected by the end of the second quarter 2014. The transaction is subject to certain conditions precedent, as well as regulatory approvals.
AECI is an explosives and specialty chemicals group domiciled in South Africa which businesses are characterised by application know-how and service delivery in many African countries. It already has a footprint in the Industrial Water and Municipal and Waste Water markets in South Africa, supplying a Total Water Solution to its customers.
The Water Treatment business of Clariant provides chemicals, services and engineering solutions to a wide range of industries such as mining, automotive, food and beverage, metals and many others. It also serves municipalities to ensure supply of drinking water in many African communities. In 2013, the Water Treatment business in Africa reported approximately CHF 41 million in sales. In total 210 employees in Africa are affected by the transaction.
"The divestment is a result of our continuous active portfolio management. The Water Treatment business does no longer meet our positioning as a globally leading company in all of our businesses. Although Water Treatment is an overall attractive industry and the business is well positioned in Africa Clariant has decided to identify a better owner who is able to focus on this service driven activity", says Hariolf Kottmann, CEO of Clariant.
Mark Dytor, Chief Executive of AECI added: "We are delighted to have reached agreement with Clariant for this transaction. The water treatment industry is one we have identified as being of strategic significance for our group’s future growth in Africa. There are many synergies between AECI’s existing activities in this sector and Clariant’s Water Treatment business. The acquisition will enhance our ability to provide customers with leading edge products and service solutions on our continent where water is often a scarce resource."