Clariant Seen Gaining $352 Million From Unit Sales

Clariant AG (CLN), midway through a disposal program, is set to generate about 320 million Swiss francs ($352 million) from the latest two assets earmarked for sale this year, according to a survey of analysts by Bloomberg.

Leather-chemical and detergent and intermediate ingredient units will probably fetch more than six times earnings before interest, taxes, amortization and depreciation, according to the average estimate of seven analysts surveyed. Clariant is looking to find a buyer for the units, which generate earnings of 50 million francs annually, by year end.

Chief Executive Officer Hariolf Kottmann has presided over a 23 percent share price rise this year after closing the sale of paper, textile and emulsions units to SK Capital Partners LP on Oct. 1. Clariant cut the final price to 425 million francs to get the deal done, showing its intent to focus on more profitable catalysts and cosmetic ingredients.

The sale of leather, detergents and intermediates units may be affected by concerns over business performance, said Patrick Rafaisz, an analyst with Bank Vontobel AG in Zurich. “The Ebitda expectations for the second wave of asset sales may be too high, especially given the first round of asset sales which disappointed.”

The leather and detergent and intermediates businesses have sales of about 550 million francs. The enterprise value of detergents and intermediates may be 175 million francs, while leather may be worth 164 million francs, according to five analysts surveyed by Bloomberg.

“I think a multiple of six times Ebitda is fine, but is Ebitda still at 50 million francs, that’s the question,” the Bank Vontobel analyst said.

Clariant spokesman Kai Rolker declined to comment.

To contact the reporter on this story: Patrick Winters in Zurich at pwinters3@bloomberg.net

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net

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