11 Feb 2014

Clariant Divests its Water Treatment Business to South African AECI

Muttenz, February 11, 2014 - Clariant, a world leader in specialty chemicals, today announced that it has signed an agreement to divest the Water Treatment business in Africa to AECI, domiciled in South Africa. The total consideration of the sale amounts to CHF 34 million in cash at closing that is expected by the end of the second quarter 2014. The transaction is subject to certain conditions precedent, as well as regulatory approvals.

AECI is an explosives and specialty chemicals group domiciled in South Africa which businesses are characterised by application know-how and service delivery in many African countries. It already has a footprint in the Industrial Water and Municipal and Waste Water markets in South Africa, supplying a Total Water Solution to its customers.

The Water Treatment business of Clariant provides chemicals, services and engineering solutions to a wide range of industries such as mining, automotive, food and beverage, metals and many others. It also serves municipalities to ensure supply of drinking water in many African communities. In 2013, the Water Treatment business in Africa reported approximately CHF 41 million in sales. In total 210 employees in Africa are affected by the transaction.

“The divestment is a result of our continuous active portfolio management. The Water Treatment business does no longer meet our positioning as a globally leading company in all of our businesses. Although Water Treatment is an overall attractive industry and the business is well positioned in Africa Clariant has decided to identify a better owner who is able to focus on this service driven activity”, says Hariolf Kottmann, CEO of Clariant.

Mark Dytor, Chief Executive of AECI added: “We are delighted to have reached agreement with Clariant for this transaction. The water treatment industry is one we have identified as being of strategic significance for our group’s future growth in Africa. There are many synergies between AECI’s existing activities in this sector and Clariant’s Water Treatment business. The acquisition will enhance our ability to provide customers with leading edge products and service solutions on our continent where water is often a scarce resource.”

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Notes for editors

www.clariant.com

Clariant is a globally leading specialty chemicals company, based in Muttenz near Basel/Switzerland. On December 31, 2012 the company employed a total workforce of 21,202. In the financial year 2012, Clariant recorded sales of CHF 6.038 billion for its continuing businesses. The company reports in four business areas: Care Chemicals, Catalysis & Energy, Natural Resources, and Plastics & Coatings. Clariant’s corporate strategy is based on four pillars: managing businesses for profitability, research & development and innovation, growth in emerging markets, and repositioning of the portfolio.

www.aeci.co.za

AECI is an explosives and specialty chemicals Group domiciled in South Africa. It is listed on the Johannesburg Stock Exchange, with a market capitalisation of ZA16,5 billion, and has a total employee complement count of 7 000. In 2014, AECI celebrates 90 years of its incorporation as a company. Group businesses service the mining and manufacturing sectors both locally and internationally. The focus for growth is on Africa, South East Asia and South America. AECI’s businesses are characterised by application know-how and service delivery. They often operate in niche markets and are supported by leading technologies which are developed in-house or are sourced from international partners. AECI’s vision is to be the supplier of choice for customers in its chosen markets. The Group aims to be Africa’s leading supplier of explosives and mining services and specialty chemicals, mainly to the mining and manufacturing sectors and in key emerging markets around the world.

www.improchem.co.za

ImproChem provides hydrocarbon process, chemical process, water treatment, water optimisation and total water management and hygiene and sanitation process solutions for the industrial and public sectors in sub-Saharan Africa including the Indian Ocean Islands. Customers are mainly in the mining, industrial production, municipal water treatment, food and beverage, and oil and refining sectors.