Clariant further expands operating margin
Update on Süd-Chemie acquisition
On 21 April, Clariant completed the purchase of 96.15% of the shares in Süd-Chemie from One Equity Partners and the family shareholders. The overall transaction value amounted to approximately EUR 1.9 billion (CHF 2.5 billion). A public offer to acquire the outstanding shares from Süd-Chemie minority shareholders will be initiated before the end of May 2011. Süd-Chemie will be fully consolidated as of 21 April 2011.
After closing the acquisition, Clariant started the integration process in order to achieve a quick and seamless integration of the Süd-Chemie businesses into Clariant.
As further steps in the execution of its profitable growth strategy, Clariant has acquired the North American de-icing specialist Octagon Process LLC on 19 March 2011, and the Saskatchewan, Canada-based oil services company Prairie Petro-Chem on 1 April 2011.
Outlook 2011
Starting 2011, Clariant shifted its focus to continuous improvement and profitable growth following the completion of restructuring in 2010. While the continuous improvement initiative "Clariant Excellence" will make the lower cost basis sustainable, the company is now focusing on creating value by investing in future profitable growth.
Clariant expects global economic growth to continue in 2011 but at a slower pace than in 2010. Exchange rates for the major currencies are expected to remain volatile. Growth will mainly come from the emerging markets in Asia/Pacific and Latin America. Commodity prices are expected to continue to rise in 2011, leading to an increase in raw material costs in the mid-teens.
Clariant - excluding the recently acquired Süd-Chemie - expects 2011 sales growth in local currencies in the low single-digit range. Additional benefits from the restructuring measures taken during the last two years will improve the company's cost position, resulting in a positive impact on the operating result. The EBITDA margin before exceptional items is therefore expected to rise above the 2010 level.
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