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Cognis sells its Pulcra Chemicals business to strategic investor
16 Jul 2008 -
Cognis has signed an agreement to sell its Pulcra Chemicals subsidiary to Germany based Fashion Chemicals GmbH & Co. KG for 26.3 million euros. The sale is in line with Cognis' strategy of focusing on its core businesses driven by the wellness and sustainability trends. Agreements respecting the transfer of the business and related transactions were signed today in Düsseldorf, Germany.
Cognis will sell its Pulcra Chemicals subsidiary to Fashion Chemicals GmbH & Co. KG, an investor backed mainly by DSD Deri Sanayicileri Dis Ticaret A.S ("DSD"), based in Istanbul, Turkey, an organization with excellent connections within the leather goods industry. The stakeholders of DSD include leading tanneries and leather manufacturers.
The cash proceeds from the transaction will amount to 26.3 million euros. Approximately 9 percent of the cash proceeds will be financed by members of Pulcra Chemical's senior management team. Fashion Chemicals additionally took over 15 million euros of financial liabilities (including debts and pensions). The final transaction is subject to usual closing conditions including regulatory approvals and is expected to be completed by the end of October 2008.
Pulcra Chemicals, which supplies process chemicals to the textile and leather industries, was previously the Process Chemicals strategic business unit (SBU) of Cognis. The SBU was carved out into separate legal entities on July 1, 2007, and renamed Pulcra Chemicals. Pulcra operates production sites and service centers in Brazil, China, Germany, India, Indonesia, Italy, Mexico, Spain, Turkey and the USA. In 2007, Pulcra Chemicals reported external sales of 246 million euros.
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