19-Sep-2018 - Clariant SE

Clariant makes a step change into higher value specialties

Intended transaction to combine Clariant’s Additives and high value Masterbatches with parts of SABIC’s Specialties business to form the Business Area High Performance Materials

Clariant announced an updated strategy and financial outlook as well as the signing of a Memorandum of Understanding with SABIC on a significant collaboration opportunity between the two companies in the area of high performance materials. The Group intends to expand more strongly by focusing on customer-specific products and solution offerings with attractive growth prospects and above average value potential.

By 2021, following the creation of High Performance Materials and the divestment of the remaining Plastics & Coatings Business Area, Clariant expects to deliver significantly higher sales of around CHF 9 billion and an EBITDA margin of approximately 20 % with an operating cash flow of more than CHF 1.2 billion.

“The portfolio upgrade together with the continuation of Clariant’s strategy enables the Group to realize a significant step change into higher value specialties, which will allow the Group to considerably augment value creation for all our stakeholders”, said Hariolf Kottmann, CEO of Clariant.

The intended combination of Clariant’s Additives and high value Masterbatches (color, high temperature resins and health care) and parts of SABIC’s Specialties business will create a uniquely positioned provider of highly customer-specific high performance materials and solutions under the name High Performance Materials.

The combination of Clariant’s and SABIC’s offerings within Clariant is expected to result in significant synergies with an anticipated annual run-rate of CHF 100 million, realized over three years from closing. Implementation costs are estimated at CHF 80 million over the same time. The combination will be significantly EPS accretive in the first year.

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