SABIC has completed the purchase of Clariant’s 50% stake in Scientific Design. Through this transaction, SABIC acquires full ownership of Scientific Design, a leading licensor of high-performance process technologies and catalyst manufacturer. The transaction was announced in February 2022.
The acquisition is expected to strengthen SABIC’s growth in the specialties market. Last year, the company repositioned its specialties division as a stand-alone strategic business unit to capture organic and inorganic growth opportunities independent of feedstock dynamics.
Clariant’s 50% stake in Scientific Design was valued at US$130 million. Together with a profit-sharing arrangement beginning on January 1, 2021, and continuing until the closing of the transaction, Clariant’s net cash inflow before taxes and transaction costs is US$139.4 million.
Clariant intends to use these proceeds to invest in growth projects within its core businesses, to implement its sustainability and innovation strategy, to fund performance improvement programs, and to strengthen its balance sheet to reach and defend a solid investment-grade rating.
- Clariant AG, Muttenz, Switzerland
- SABIC, Riyadh, Saudi Arabia
