Clariant to Sell JV Stake to Saudi Arabia's SABIC for $130 Million
February 02 2022 - 1:52AM
Dow Jones News
By Joshua Kirby
Clariant AG said Wednesday that is has agreed to sell its share
of a joint venture to Saudi partner SABIC Agri-Nutrients Co. for
$130 million.
The agreement comes after SABIC executed a call option set in
2015 to acquire Clariant's 50% stake in the joint venture that owns
Scientific Design, the Swiss chemicals group said. The New
Jersey-based operation carries out development and licensing of for
the production of ethylene oxide, ethylene glycol, bio-ethylene,
bio-EO, bio-EG, EO derivatives, polyols and maleic anhydride,
according to Clariant.
Clariant and SABIC agreed to value the business at $260 million,
which makes the valuation of Clariant's share $130 million, or
around 12 times Scientific Design's expected earnings before
interest, taxes, depreciation and amortization for 2021, the
company said. Clariant acquired the stake in the venture in
2011.
The final amount will be paid when the transaction closes, which
is expected, subject to regulatory approvals, around the middle of
this year, Clariant said.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
February 02, 2022 01:37 ET (06:37 GMT)
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