Photo by: Duane Daws
JSE-listed speciality chemicals group AECI on Tuesday announced that its wholly owned subsidiary ImproChem would acquire Clariant Southern Africa’s water treatment business in Africa as well as its Southern African assets for a total cash consideration of R409-million.
A 50% shareholding in Clariant’s broad-based black economic-empowerment partner Blendtech, which operated mainly in the municipal markets in South Africa, was also included in the acquisition.
The acquisition was in line with AECI’s strategy to extend its presence in Africa as a water treatment solutions provider for a range of industrial and municipal customers.
“ImproChem has established a footprint on the continent subsequent to the acquisition of General Electric’s chemical and monitoring solutions business in Africa and the Indian Ocean Islands in 2012,” AECI CE Mark Dytor explained in a statement on Tuesday.
He said the Clariant acquisition would enhance this footprint as ImproChem’s direct sales capability in many African countries would enable it to leverage Clariant’s penetration of these markets.
Clariant CEO Hariolf Kottmann said the company had decided to sell the business “as a result of our continuous active portfolio management. The water treatment business no longer meets our positioning as a global leader in all of our businesses”.
He added that although water treatment was an attractive industry overall and the business was well positioned in Africa, Clariant decided to identify a better owner which was able to focus on this service-driven activity.