M&As: Heubach/SK Capital Partners acquire Clariant colourants biz; Indorama to expand packaging business into Vietnam with acquisition

Producer of pigments Heubach Group and private investment firm SK Capital Partners have completed the acquisition of Swiss speciality chemicals firm Clariant’s Global Colorants Business. The combined business will operate under the Heubach brand, creating a global pigment technology and industry leader.

The newly combined Heubach Group will provide comprehensive colour solutions, supplying a broad portfolio of organic, inorganic, and anti-corrosive pigments, pigment preparations, dyes, colourants and specialty materials. It operates its global business from 19 manufacturing facilities across Europe, the Americas, Asia and Africa, employing approximately 3,000 people. The headquarters of the Heubach will be established in Vienna, Austria.

Aaron Davenport, a Managing Director of SK Capital, noted, “The combination of Heubach and Clariant Pigments creates an industry leader committed to the highest standards in manufacturing, quality and service. We look forward to supporting management in the growth and improvement of the Company by investing into talent, innovation and market expansion.”

Heubach also announced the appointment of Stefan Doboczky as CEO of Heubach Group, effective 10 January 2022.

In other news, Thailand-headquartered speciality chemicals firm Indorama Ventures Public Company Limited (IVL) says that it is in the process of acquiring shares in Ngoc Nghia Industry – Service – Trading Joint Stock Company (NN).

NN is a PET converter in Vietnam with long-standing relationships with major brands. It has four manufacturing sites in both the North and South of Vietnam. It has a total production capacity of approximately 5.5 billion units of PET preforms, bottles and closures, or equivalent to a PET conversion of 76,000 tonnes/year.

NN provides PET packaging products to major multinational and Vietnamese brands in the beverage and non-beverage industries. Its business operations are run by an experienced management team with strong industry knowledge as well as local market exposure and understanding and IVL adds that “these competitive advantages are strategic fits for IVL and would complement the company’s long-term growth after integration. This proposed acquisition will strengthen IVL’s market position in the packaging business in high growth markets of the Asia-Pacific region.”

Further adding to this, D K Agarwal, CEO of Combined PET, IOD and Fibers Business at Indorama Ventures, said, “This investment opportunity is in line with IVL’s business strategy of expanding our footprint in rising economies like Vietnam. The country is positioned to be the ASEAN production hub for the Asia-Pacific region. Moreover, Vietnam’s PET packaging market is expected to grow continuously due to strong growth in consumption and improving living standards. The proposed acquisition would foster sustainable growth in our largest business segment, Combined PET, which has been growing constantly to serve increasing demands globally.”

The acquisition process is required to follow the Law on Securities, its guiding decrees and circulars as required by the State Securities Commission of Vietnam and regulations of the Hanoi Stock Exchange. Through its affiliate, Indorama Netherlands B.V., IVL would be required to do the tender offer of all of NN’s shares. The transaction is expected to be completed by the first half of 2022.

(PRA)

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