Clariant to sell masterbatches business for $1.6 bln

Clariant (AG), which is 24.99% owned by Saudi Basic Industries Corporation (SABIC), agreed to sell its entire Masterbatches business to PolyOne for $1.56 million, the company said in a statement.

The deal is expected to be completed by Q3 2020, and its proceeds will go for investments in innovation and technology-related applications within the core business areas, to strengthen Clariant’s balance sheet and to return capital to shareholders, the statement added.

It also noted that Clariant’s board of directors proposed an extraordinary cash distribution of CHF 3.00 per share to the Clariant annual general meeting to be held on March 30, 2020.

“After the successful divestment of Healthcare Packaging in October 2019, the agreement to sell Masterbatches is an important step in delivering our strategy defined in 2015 to concentrate on our three core Business Areas Care Chemicals, Catalysis and Natural Resources,” the statement also said.