Clariant is bidding to acquire Süd-Chemie AG in €2.0 billion ($2.67 billion) deal with a particular interest in the German chemical company's catalyst and adsorbents businesses. In a presentation to analysts, Clariant called the catalyst and adsorbent units "attractive, high margin businesses" that provide "future technologies with high long-term growth potential." On Feb. 16, Süd Chemie's shares closed up 2.32% to €127.90 ($170.94). Clariant shares, meanwhile, fell 13.0% to CHF15.19 ($15.22).
Clariant said that the acquisition, which is expected to close in April, would expand expands its exposure to global megatrends; strengthen technology, R&D, and innovation capabilities; and contribute high quality of earnings. Clariant noted that Süd Chemie's catalyst business has enjoyed a compound average growth rate in sales of 6.5% from 2005-2010, with 2010 EBITDA (earning before income taxes, depreciation, and amortization) margin of 18.2%. Adsorbents, used in food, plastic additives, and water-based suspensions, have seen compound average growth in sales over the last five years of 7.1%, with an EBITDA margin of 13.5%....