CLZNY Clariant Ag (PK)

   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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