Swiss speciality chemicals firm Clariant and US-based Ashland have closed the previously announced sale of their joint venture ASK Chemicals, headquartered in Hilden, Germany, to investment funds affiliated with Rhône, a London and New York-based private equity investment firm.

The enterprise value of the transaction before debt and assumed liabilities amounts to EUR257 million. After adjustments for debt and assumed liabilities, total pre-tax proceeds to the sellers will be approximately EUR149 million, which includes EUR128 million in cash and a EUR21 million buyer note. Proceeds will be split evenly between Ashland and Clariant under terms of the 50/50 joint venture.

“The divestment of our stake in ASK Chemicals is part of our continuous active portfolio management to reallocate capital towards our more profitable growth areas,” said Hariolf Kottmann, CEO of Clariant.

With 1,800 employees in 25 countries ASK Chemicals is a foundry chemicals manufacturer. Its portfolio encompasses a broad range of foundry resources such as binders, coatings, feeders, filters and release agents, as well as metallurgical products including inoculants, inoculation wires and master alloys for iron casting. In full-year 2013 ASK Chemicals generated revenues of EUR513 million.