Clariant sells to PolyOne

The transaction values the Masterbatches business at US$ 1.56 billion, representing c. 12.2 times the last twelve months reported EBITDA (ending September 2019) on a cash and debt free basis according to the Clariant press release. However, the PolyOne website press release states, “The combined net purchase price is US$ 1.45 billion, representing an 11.1x multiple of last twelve months adjusted EBITDA, or 7.6x including anticipated synergies.” The purchase amount is payable at closing, which is expected by Q3 2020. The seeming discrepancy might be explained by the separate deal for US$ 60 million for the Clariant Chemicals India a listed company in India in which Clariant holds 51% stake. At the recent K2019 exhibition in Dusseldorf it was made clear that Clariant was divesting its entire Masterbatch business, including Clariant Chemicals India. “This announcement is a significant milestone on our path to focussing on businesses with above-market growth, higher profitability and stronger cash generation. After the successful divestment of Healthcare Packaging in October 2019 the agreement to sell Masterbatches is an important step in…

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