21 September 2009

BDA advises Clariant on divestment of Korean masterbatch business

Divested Clariant Masterbatches (Korea) Ltd to Dong Bang Chemical


Business Development Asia LLC (“BDA”) has advised Clariant on the sale of Clariant Masterbatches (Korea) Ltd to Mr. Jung Kyo Lee, owner and CEO of Dong Bang Chemical Co, a Korean masterbatch company. Mr. Lee has acquired all of the shares of Clariant Masterbatches (Korea) Ltd, including a complete masterbatch product portfolio and a wide range of production and technical capabilities to serve the Korean market. Both Dong Bang Chemical and Clariant Masterbatches (Korea) have a long history in the masterbatch business in Korea, stretching back over 30 years. Masterbatches are concentrated pelletized colorants and additives which are used to add colour and improve the performance of plastic products across a range of end uses such as packaging, fibres, electronic and home appliances and automotive plastics.

Clariant Masterbatches (Korea) brings to Dong Bang Chemical the benefits of a strong service capability for the consumer goods and additives market segments. It has an efficient manufacturing platform for medium to large production lots including white and black masterbatches, and a strong regional presence in the southern part of South Korea.

Dong Bang is a recognized masterbatch producer located in the northern part of South Korea and is a leader in the textile market segment. It has created a highly efficient manufacturing platform for small production lots especially tailor-made color masterbatches for polypropylene fibers. “Dong Bang emphasizes fast service and operates with a motto of ‘delivering customized products in 24 to 48 hours’” said Mr. Lee, CEO of Dong Bang Chemical.

“The acquisition will result in improved operational efficiency and service to Korean plastics processors. The addition of Clariant’s masterbatches will complement Dong Bang Chemical’s fast color-matching ability with Clariant’s excellent product quality and formulation know-how,” said Hans Ulrich Kurtz, Head of Clariant’s Masterbatches business in Asia.

BDA Transaction Team
Andrew Huntley, Senior Managing Director, ahuntley@bdallc.com
Jeff Acton, Managing Director, jacton@bdallc.com
Heejun Yang, Senior Associate, hyang@bdallc.com
Jay Shin, Associate, jshin@bdallc.com
Jason Song, Associate, jsong@bdallc.com

About Clariant
Clariant is a global leader in the field of specialty chemicals operating in four business divisions: Textile, Leather & Paper Chemicals, Pigments & Additives, Functional Chemicals and Masterbatches. Headquartered in Muttenz near Basel, Switzerland, Clariant generated sales of more than CHF 8.1 billion in 2008. Clariant is represented on five continents by more than 100 Group companies, employing 20,000 people.

About Business Development Asia
Business Development Asia LLC was founded in 1996. BDA assists multinational corporate and financial sponsor clients to identify and execute crossborder acquisitions, divestments, JVs, restructuring and capital raising, in Asia, the Middle East and internationally. The company is headquartered in New York with offices in London, Bahrain, Mumbai, Hong Kong, Shanghai, Seoul, and Tokyo. BDA employs 50 full-time professional staff across its eight offices, supplemented by a team of senior advisors around the world. BDA’s client list includes Air Liquide, Air Products, Apar Industries, Areva, Arkema, AXA Private Equity, BorgWarner, Cadbury Schweppes, Celestica Cement Traders International, Clariant, DIC, DSM, DuPont, Ecolab, Federal-Mogul, Godrej, Hanjin Shipping, Haldex, Henkel, Hercules, Hershey, Huntsman, Inabata, Invista, ITT, Johnson Controls, Johnson Matthey, Kennametal, Kimberly-Clark, Lear, Lubrizol, Magna, Mars, Millipore, Molex, Morgan Stanley, Nalco, Pitney Bowes, Reuters, Rohm & Haas, Ryder, Sanofi-aventis, Seera, Siemens, SigmaKalon, Sumitomo Chemical, Sun Chemical, TATA Auto Components, Tenneco, Thomson, Timken, Tomkins, Tredegar, Visteon, WestLB, WR Grace, and the British Government. Further information on BDA is available at www.bdapartners.com.