MUTTENZ, Switzerland – Specialty chemical company Clariant has agreed to sell its entire Masterbatches business to PolyOne. The transaction values the Masterbatches business at $1,560 million.

“This announcement is a significant milestone on our path to focusing 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 delivering on our strategy defined in 2015 to concentrate on our three core Business Areas — Care Chemicals, Catalysis and Natural Resources,” said Hariolf Kottmann, Executive Chairman of Clariant. “As announced, we are confident that we will execute the remaining divestment of our Pigments business in 2020 in order to build the new, more focused and stronger Clariant by 2021,” he added.

As previously communicated, the proceeds from the intended divestments of Clariant’s non-core businesses will be used to invest in innovations and technological applications within the core business areas, to strengthen Clariant’s balance sheet and to return capital to shareholders.

Clariant’s Masterbatches business offers color and additive concentrates and performance solutions for plastics. In the financial year 2018, the total Masterbatches business generated sales of around CHF 1.181 billion.

As a consequence of the divestment of the Masterbatches business, as well as the anticipated divestment of the Pigments business by the end of 2020, Clariant’s Board of Directors is proposing an extraordinary cash distribution of CHF 3.00 per share to the Clariant Annual General Meeting to be held on March 30, 2020. Subject to a positive vote of Clariant’s shareholders, the extraordinary distribution of approx. CHF 1 billion will be paid out post the closing of the divestment of the Masterbatches business.