11 Feb 2014 07:00
AECI LTD - Acquisition of Clariant's Water Treatment BusinessAECI LTD - Acquisition of Clariant's Water Treatment Business
PR Newswire
London, February 10
AECI LIMITED Incorporated in the Republic of South Africa (Registration No. 1924/002590/06) Share code: AFE ISIN No. ZAE000000220 ("AECI") AECI ACQUIRES CLARIANT'S WATER TREATMENT BUSINESS IN AFRICA AECI and Clariant Southern Africa Proprietary Limited ("Clariant") have reachedagreement for AECI's wholly-owned subsidiary ImproChem Proprietary Limited("ImproChem") to acquire Clariant's water treatment business in Africa and itsSouth African assets for a total cash consideration of R409 million ("theacquisition"). Also included in the acquisition is a 50% shareholding inBlendtech, Clariant's B-BBEE partner in South Africa. Clariant is part of Switzerland-based Clariant International Limited. The acquisition is in line with AECI's strategy to extend its presence inAfrica in the provision of water treatment solutions for a broad range ofindustrial and municipal customers, principally through ImproChem. "ImproChem has established a footprint on the continent subsequent to theacquisition of GE's Chemical and Monitoring Solutions business in Africa andthe Indian Ocean Islands in 2012," says Mark Dytor, Chief Executive of AECI."On completion of the Clariant acquisition, which will also be merged withImproChem, this footprint will be enhanced since ImproChem's direct salescapability in many African countries will enable it to leverage Clariant'spenetration of these markets." Blendtech operates mainly in the municipal markets in South Africa. Commenting on Clariant's rationale for the acquisition CEO Hariolf Kottmannsaid: "The divestment is a result of our continuous active portfoliomanagement. The water treatment business no longer meets our positioning as aglobal leader in all of our businesses. "Although water treatment is an attractive industry overall and the business iswell positioned in Africa, Clariant decided to identify a better owner who isable to focus on this service-driven activity." ImproChem has manufacturing, laboratory and engineering facilities inJohannesburg and Umbogintwini, south of Durban. Clariant has complementaryfacilities in Johannesburg and in Pietermaritzburg, KwaZulu-Natal. The acquisition is subject to certain conditions precedent, including approvalby the relevant competition authorities. Woodmead, Sandton 11 February 214
Sponsor: RAND MERCHANT BANK (A Division of FirstRand Bank Limited)