BDA is pleased to announce that its client, Clariant AG (“Clariant”), a leading global specialty chemicals producer, has acquired the organic pigment business of Jiangsu Multicolor Fine Chemical Co., Ltd (“JMC”). BDA acted as the exclusive financial advisor to Clariant on the acquisition. Terms of the transaction were not disclosed.
JMC is a leading supplier of high performance pigments and pigment preparations located in Wuxi, Jiangsu Province in eastern China. As part of this transaction, Clariant will also build a world-scale Pigment PV23 plant in Zhenjiang City, Jiangsu, designed to ensure the highest yields, the lowest cost, highest efficiency sustainable operations, and full compliance with local and international regulatory standards.
Hariolf Kottmann, CEO of Clariant, commented: “The acquisition of the Jiangsu Multicolor business and the investment in a world-scale pigment plant in Zhenjiang will consolidate our position as a leader in the pigments industry. It is in line with Clariant’s strategy of taking advantage of growth opportunities in Asia.”
Marco Cenisio, Head of Clariant’s Business Unit Pigments, added: “In line with our business strategy, this acquisition and investment enables us to expand our manufacturing footprint in Asia and to grow in attractive segments of the markets. It will strengthen our ability to capture the growing demand for high performance pigments and pigment preparations in China, and in other key Asian markets.”
Jeffrey Wang, Managing Director of BDA Shanghai, commented: “This transaction again demonstrates BDA’s expertise in cross-border M&A. Even in challenging markets, we can help clients realise their Asian growth plans. This transaction builds on our strong chemical sector track-record. It is the second successful transaction on which BDA has advised Clariant. We wish Clariant much future success in China.”
BDA Deal Team
Andrew Huntley, Senior Managing Director, London
Jeffrey Wang, Managing Director, Shanghai
Kevin Song, Senior Associate, Shanghai
Clariant AG is a leading global specialty chemicals company, headquartered in Muttenz, near Basel, Switzerland, and listed on the SIX Swiss Exchange. Clariant was formed in 1995 as a spin-off from Sandoz. Clariant employs 21,200 people worldwide. In 2012, Clariant recorded sales of CHF6.0bn (U$6.7bn) for its continuing businesses. The company reports in four business areas: Care Chemicals, Catalysis & Energy, Natural Resources, 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.clariant.com
About Jiangsu Multicolour Fine Chemicals
Jiangsu Multicolor Fine Chemical Industry Co., Ltd. (“JMC”) is a Chinese high-tech, provincial privately-owned, science and technology enterprise. It has three subsidiaries: Wuxi Xinguang Chemical Industry Co., Ltd., Yixin Multicolor Fine Chemical Co., Ltd., and Xinyi Multicolor Fine Chemical Co., Ltd. JMC produces Organic Pigments, Pigment Pastes for Textile Printing, and Pigment Preparations. JMC has sales offices in the main cities including Beijing, Shanghai, Guangzhou, Shantou and Shaoxing. JMC products are sold nationwide and exported to more than 40 countries. In 2001, JMC was certified ISO9001:2000. JMC capacity is 5,000 tons of Azo Pigments, 800 tons of Pigment Violet 23, and 1,500 tons of Pigment Paste & Preparations. 80% of JMC sales are exported worldwide. http://www.xinguangchem.com/template/index-e.htm
Business Development Asia LLC (“BDA”) is a leader in cross-border investment banking in Asia. BDA advises on M&A, capital raising, and restructuring. BDA has been consistently owned and managed by the same team since 1996. BDA has a track record of providing independent advice to blue-chip corporate and financial sponsor clients from North America, Europe and Asia. BDA was named Investment Banking Firm of the Year by The M&A Advisor in both 2012 and 2010. BDA is headquartered in New York with offices in London, Bahrain, Mumbai, Ho Chi Minh City, Hong Kong, Shanghai, Beijing, Seoul and Tokyo. BDA formed a partnership with William Blair & Company in 2011. www.bdapartners.com
For more information, please contact Andrew Huntley in London at +44 20 7182 4518 or Jeffrey Wang in Shanghai at +86 21 5407 5580.