Deals & Cases

Homburger advised Clariant AG in the USD 1.56 bn sale of its global masterbatches business

On December 19, 2019, Clariant AG (Clariant) (SIX: CLN) announced that it has entered into an agreement with PolyOne Corporation (NYSE: POL) for the divestment of its entire masterbatches business. Clariant’s masterbatches business offers color and additive concentrates and performance solutions for plastics and includes 46 manufacturing operations and technology centers in 29 countries and approx. 3,600 employees.

The transaction comprises two transactions: the sale by Clariant of its global masterbatches business and the sale by Clariant Chemicals (India) Limited, a company listed on the stock exchanges in India with Clariant holding a 51% controlling stake, of the local Indian masterbatches business. The total transaction value amounts to USD 1.56 bn, representing approx. 12.2 times the last twelve months reported EBITDA (ending Q3 2019) on a cash and debt free basis. Closing of both transactions is expected by Q3 2020 and is subject to customary closing conditions and regulatory approvals.

Homburger acted as global lead legal advisor to Clariant in connection with the transactions and the global separation of the masterbatches business in a stand-alone organization. The Homburger team was led by partner Frank Gerhard and included partner Daniel Hasler, associates Mario Wälti, Marc Schamaun, Nicola Togni and Carlo Sulser, junior associates Luzius Kaufmann and Urs Stürmer (all Corporate / M&A), partner Marcel Dietrich, counsel Andreas Burger and associate Allegra Arnold (all Competition), partner Reto Heuberger and associates Céline Martin and Marc Vogelsang (all Tax), partner Gregor Bühler, associate Philippe Baumann and junior associate Oriana Schöni (all IP / IT).