Volume 85 Issue 20 | p. 23 | Concentrates
Issue Date: May 14, 2007

Clariant Exits Custom Chemicals

Department: Business

Swiss specialty chemicals producer Clariant is selling, for an undisclosed sum, its custom manufacturing business to International Chemical Investors Group (ICIG), formed in 2004 by a team led by Achim Riemann. The unit supplies intermediates and active ingredients for the agrochemical, pharmaceutical, and polymer industries from sites in Germany and the U.S. Last year, it had sales of about $180 million and about 490 employees. The divestment follows Clariant's June 2006 sale of its pharmaceutical fine chemicals business to the private equity firm TowerBrook Capital Partners. It put the custom manufacturing unit up for sale in September 2006. Clariant expects to record a book loss of just under $60 million on the deal, which is expected to close by midyear. ICIG's Riemann says the deal will make his company an important player in the nonregulated custom manufacturing sector, where it will have annual sales of about $270 million (C&EN, April 9, page 28). ICIG plans to combine the Clariant operations with its other fine chemicals manufacturing activities, particularly WeylChem, the former Rütgers Chemicals business that ICIG acquired in 2005.

 
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