Clariant sells Pharmaceutical Fine Chemicals to TowerBrook Capital Partners
The unit manufactures building blocks, regulatory starting materials, intermediates and active pharmaceutical ingredients (APIs) for both the innovative and the generic pharmaceutical industry. According to Clariant, at the deal's completion, the new autonomous entity will be one of the world's largest businesses based solely on pharmaceutical fine chemicals, with 2005 sales of around CHF 210 million and about 800 employees. It will operate all manufacturing sites of Clariant Pharmaceutical Fine Chemicals and will be headquartered in Frankfurt am Main, Germany.
The agreed selling price of CHF 110 million includes an earn-out participation of CHF 40 million. This earn-out participation, to be paid in two years' time, reflects the strong prospects of the unit. The deal is expected to close in the second quarter after fulfillment of local transfer requirements such as approval of the competition authorities, resulting in net cash proceeds of approximately CHF 40 million and a book loss of approximately CHF 80 million. All assets and personnel will be transferred and the business will be managed on a stand-alone basis.
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