NEW YORK--(EON: Enhanced Online News)--SK Capital Partners, a US-based private investment firm announced today that it has closed on the previously announced definitive agreement to acquire the Textile Chemicals, Paper Specialties, and Emulsions businesses of Clariant (SWX:CLN). These global divisions possess strong brands and leading technologies such as dyes, pigments, emulsions and surface active chemicals used in the textile, paper, coatings, construction and adhesive industries. The three businesses will be combined into an integrated, market-focused, and highly collaborative company to be called Archroma, which is representative of the organization’s mission to provide its customers with the highest levels of quality, reliability, innovation and customer delight. Together, the businesses generate revenues of approximately $1.3 billion, operate from twenty five facilities around the world and employ approximately 3,000 employees. The company will be headquartered in Switzerland and its Textile Specialties, Paper Solutions and Emulsion Products businesses will be managed, as they are today, from Singapore, Switzerland and Brazil respectively.
With a disciplined focus on the specialty materials, chemicals and healthcare sectors, SK Capital has significant relevant experience gained through both previous and current investments in the textile, fiber and nylon chemicals sectors, as well as deep knowledge of the end markets served by the businesses. The acquisition is consistent with SK Capital’s strategy of acquiring niche market leaders with strong brands, technologies and underlying growth trends and actively supporting management in building thriving businesses with sustainable competitive advantages.
Archroma will be led by CEO Alexander Wessels, an executive with almost 25 years of chemical, pharmaceutical and process industry experience and a proven track record of driving growth and improvement. Mr. Wessels spent the past 7 years at Royal DSM NV, and in his most recent position served as the President and CEO of DSM Pharmaceutical Products, a global pharmaceutical ingredients and contract manufacturing organization. Mr. Wessels and his senior leadership team will focus on generating a renewed sense of purpose and vision, and will work closely with the current existing heads of the three individual businesses acquired from Clariant.
Mr. Wessels noted, “With SK Capital’s acquisition of the businesses, Archroma has a financially strong and knowledgeable parent who believes in our technologies, brands and leading market positions. In addition, I’m proud to join a company with a 120-year long history of providing a portfolio of world-class products and one that is driven by a team of highly talented people who bring fresh thinking and ideas to an industry hungry for innovation.”
SK Capital Managing Director Aaron Davenport said, “After the long period of time required to close a transaction with this level of complexity, we are excited to finally partner with our newly recruited senior leadership team, the existing management and the employees of these businesses to build upon their strong technology, brand, and leading market positions. We believe these businesses provide an attractive platform to capitalize on their overlaps in technology, manufacturing, supply chain and logistics.”
Archroma is SK Capital’s fifth corporate carve-out of their seven portfolio companies.
Morgan, Lewis & Bockius LLP and Bär & Karrer AG acted as legal counsel to SK Capital. Jefferies & Company, Inc. served as financial advisor to SK Capital and provided financing to support the transaction. Homburger AG acted as legal counsel and Citigroup Global Markets Limited served as financial advisor to Clariant.
About SK Capital
SK Capital is a private investment firm with a disciplined focus on the specialty materials, chemicals and healthcare sectors. Our integrated, multi-disciplinary team utilizes its industry, operating and investment experience to help transform businesses into higher performing organizations. Located in New York, NY and Boca Raton, FL, we are currently investing from SK Capital Partners III, L.P., a $500 million fund of committed capital. Our portfolio companies generate revenues of over $7.0 billion annually and employ more than 7,000 people. Please visit www.skcapitalpartners.com for more information about SK Capital.
Clariant is a globally leading specialty chemicals company, based in Muttenz near Basel/Switzerland. On December 31, 2012 the company employed a total workforce of 21,202. In the financial year 2012, Clariant recorded sales of CHF 6.038 billion for its continuing businesses. The company reports in four business areas: Care Chemicals, Catalysis & Energy, Natural Resources, and Plastics & Coatings. Clariant’s corporate strategy is based on four pillars: managing businesses for profitability, research & development and innovation, growth in emerging markets, and repositioning of the portfolio. Please visit www.clariant.com for more information about Clariant.