Switzerland-based specialty chemicals manufacturer Clariant International Ltd. has agreed to sell its Textile Chemicals, Paper Specialties and Emulsions businesses for approximately $545 million to SK Capital Partners, a New York City-based private equity firm focused on the specialty materials, chemicals, and healthcare sectors. The sale is expected to be completed by the end of the second quarter 2013. 

The transaction includes brands and technologies in dyes, pigments, emulsions and surface active chemicals used in textile, paper, coatings, construction and adhesive applications. In 2012, the businesses generated combined revenues of approximately $1.3 billion, or approximately 15 percent of Clariant's total group sales, and employed some 3,000 people in 35 countries around the world. 

Clariant is selling the businesses as part of a portfolio repositioning following its acquisition of Germany-based specialty chemicals company Süd-Chemie AG in 2011. The strategy includes a plan to sell five divisions by the end of 2013. Clariant reports it also is in the process of divesting its Leather Services and Line Detergents & Intermediates business units. 

"For Clariant the transaction marks a significant milestone in the execution of its profitable growth strategy, after the acquisition of Süd-Chemie in 2011," said Hariolf Kottmann, CEO, Clariant. "I am pleased that we are able to execute this divestment faster than originally expected. By the end of 2013, Clariant will be an even more profitable company than today, generating a majority of sales in non-cyclical growth businesses." 

"We are delighted to partner with the management and employees of these businesses to build upon their strong technology, brand, and leading market positions to more efficiently serve their large and growing global markets and customers," said Barry Siadat, managing director, SK Capital. "We believe these businesses provide an attractive platform to capitalize on their overlaps in technology, manufacturing, supply chain and logistics. 

"Our goal for the businesses is to continue to innovate, deliver the highest quality products and delight our customers globally," Siadat continued. "Given that Clariant will continue as a separate entity, we will change the names of the businesses. We have not decided on the new name yet."