MUTTENZ, Switzerland—SK Capital Partners and Heubach Group have acquired the pigments business of Clariant A.G., which makes materials used in many plastic products.
SK of New York and Langelsheim, Germany-based Heubach are paying $895 million. The combined business will operate under the Heubach name, creating a global pigments leader with more than $1.1 billion in annual sales, officials said in a June 14 news release.
The deal could be worth another $55.6 million, based on the 2021 financial performance of the pigments unit. As part of the transaction, Clariant—based in Muttenz, Switzerland—will be reinvesting for a minority stake in the combined business.
The pigments unit being acquired is a global provider of organic pigments, pigment preparations and dyes, operating 13 global production sites and employing approximately 1,900.
Officials said that 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."
In the release, Heubach CEO Johann Heubach said that "the fit between Heubach and Clariant Pigments is perfect."
"We have been in pigments for more than 200 years," he added. "My late father and I set out to drive consolidation in the pigments industry, and the combination of Heubach and Clariant Pigments is a major milestone in this vision."