SK Capital to sell Archroma; Synthomer, Advent and Apollo Global contenders

SK Capital Partners, a US-based private investment firm, is planning to divest Swiss business Archroma, which it acquired from Swiss chemicals firm Clariant in 2013, according to Reuters. Archroma was formed in 2013 from the textile chemicals, paper specialities, and emulsions businesses of Clariant, which Clariant acquired from the former Hoechst, which now forms a key part of Archroma. The three divisions were combined into an integrated, market-focused, and collaborative company called Archroma upon becoming independent from Clariant.

According to people close to the matter, the sale could value the company at US$1.5 billion, including debt.

The company has grown organically and through acquisitions. In 2014, it bought a 49% stake in compatriot German firm M. Dohmen, which specialises in producing textile dyes and chemicals for the automotive, carpet, and apparel sectors, and in 2015 it bought the global textile chemicals business of another German chemicals firm, BASF.

According to Reuters, the likely contenders for Archroma are UK-based synthetic latex/emulsions firm Synthomer as well as private equity firms Apollo Global Management and Advent International, adding that SK Capital could also retain a stake in the business under the new owner.

Archroma has leading technologies in dyes, pigments, emulsions and surface active chemicals used in the textile, paper, coatings, construction and adhesive industries. The business operates from 25 facilities around the world, employs approximately 3,000 employees and generates revenue of US$1.3 billion. It is headquartered in Switzerland and its Textile Specialties, Paper Solutions and Emulsions Products businesses are managed from Singapore, Switzerland and Brazil respectively.