Clariant Chemicals (India) Ltd is selling its textile chemicals, paper specialties and emulsions business to Archroma India Pvt Ltd for Rs 209.15 crore ($33.88 million), as per a stock market disclosure.
The deal involves the transfer of employees, assets, liabilities and all licences, land leases, permits, consents and approvals.
Archroma India is owned by SK Spice Sarl, an affiliate of US-based PE firm SK Capital Partners. SK Capital focuses on specialty materials, chemicals and healthcare sectors. The firm is currently investing from SK Capital Partners III, LP, with a committed capital of $500 million.
The deal is part of a global divestiture of the business announced last December. Clariant Chemicals had struck a deal to sell its international textile chemicals, paper specialities and emulsions businesses, including its Indian operations, to SK Capital for around $550 million. At that time, it did not disclose the deal value of Indian operations separately.
These businesses are part of the larger segment of dyes & specialty chemicals unit of the Indian arm that churned out revenues of Rs 652 crore in CY2012.
Clariant Chemicals has production facilities for manufacture of textile chemicals and produces paper specialties and emulsion products at its Roha plant.
Clariant Chemicals share price was up 0.6 per cent in mid-day trade at Rs 508.95 a unit on the BSE in a weak Mumbai market on Friday.
In March 2012, Clariant Chemicals had sold its entire stake in Mumbai-based Chemtreat Composites India Pvt Ltd to AZ Electronic Materials Services Ltd for $1.1 million.
(Edited by Joby Puthuparampil Johnson)