Industry News

Clariant Agrees to Sell Business Unit Electronic Materials to Carlyle

Published on 2004-07-26. Author : SpecialChem


MUTTENZ, Switzerland -- Clariant announced the sale of its AZ Electronic Materials unit to The Carlyle Group for a total transaction value of CHF 518 million. The acquisition is expected to close in Autumn 2004, and is subject to approval by the relevant competition authorities.

The transaction is part of Clariant's previously initiated Transformation Program, including the sale of several non-core businesses, wide-ranging performance improvements and job reductions.

AZ Electronic Materials is a global supplier to the semiconductor and flat panel display industries. The unit, which employs approximately 800 people, has manufacturing and research & development sites in Japan, Korea, Taiwan, Germany, France and the US. In the year ended December 2003, AZ Electronic Materials generated revenues of CHF 441 million.

The Carlyle Group, a leading global private equity firm has 23 offices in 14 countries and more than $18.3 billion under management. It has specific expertise in semiconductors and electronic materials through its buyout and venture activities.

Clariant CEO Roland Loesser said: "This transaction is an excellent outcome for all parties involved. For Clariant, the sale enables us to keep our promise to lower debt and to focus on our core businesses. For AZ Electronic Materials and its employees, there is now a fully committed and focused shareholder who will invest in assets and technologies to meet customer needs and grow the business."

Robert Easton, Managing Director of the Carlyle Group said: "We believe this is an excellent step for AZ Electronic Materials, and its customers and employees. We are fully committed to supporting and investing in the growth of AZ Electronic Materials, including the Taiwan expansion, and the China site development and hope to continue to grow the company for the benefit of all."

The total transaction value of CHF518 million includes a vendor loan note to be held by Clariant of CHF 40 million.

Citigroup Global Markets Limited acted as financial adviser to Clariant on the disposal of AZ Electronic Materials.

Source: Clariant

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