Milbank LLP advised the shareholders of the Heubach Group (“Heubach”) on the partnership with SK Capital Partners (“SK Capital”) and their joint acquisition of Clariant’s Pigments Business (“Clariant Pigments”). The combined business will operate under the Heubach name, creating a global pigments leader generating more than €900 million in annual sales.
The combination of Heubach and Clariant Pigments is expected to be highly synergistic, and creates a diversified pigments player that will enhance Heubach’s and Clariant Pigments’ existing positions. The businesses share a complementary product portfolio and a regionally compatible asset footprint, which will allow for an expanded product range and wider geographical coverage to better serve customers. The combined business will continue to prioritize innovation, quality, technical service and product development in order to provide an enhanced value proposition for its customers.
The transaction values Clariant Pigments at approximately CHF 805 million, with additional consideration of CHF 50 million contingent on the 2021 financial performance of the business unit. As part of the transaction, Clariant will be reinvesting for an ownership stake in the combined business, demonstrating its continuing commitment to the success of Clariant Pigments and the substantial growth opportunity in the combination with Heubach.
Closing of the transaction is subject to customary conditions and approvals and is expected to take place in the first half of 2022.
Heubach is a leading global producer of high-quality organic, inorganic and anticorrosive pigments and pigment preparations, with headquarters in Langelsheim (Germany) and sites across Germany, US, and India and sales offices around the world. Heubach has more than 200 years of experience in pigments production as one of the first-ever manufacturers of pigments. Heubach produces approx. 35,000 tons of pigment volumes per year and employs over 1,000 people.
Clariant (SWX:CLN) is a focused and innovative specialty chemical company based in Muttenz, near Basel (Switzerland) employing more than 13,000 globally. The company reports in three business areas: Care Chemicals, Catalysis and Natural Resources.
SK Capital is a private investment firm with a disciplined focus on the specialty materials, chemicals and pharmaceuticals sectors. SK Capital’s portfolio of businesses generates revenues of approx. $11 billion annually, employs more than 16,000 people globally and operates 150 plants in 28 countries. The firm currently has greater than US$ 5 billion of assets under management.
Team Milbank: Michael Bernhardt (Lead), Andrea Eggenstein, Sebastian Dexheimer, Andreas Rief (all Corporate/M&A, Frankfurt), Alexander Rinne, Alexander Zyrewitz (both Antitrust, Munich), Matthias Schell, Moritz Philipp (both Tax, Munich).
