Clariant Divests Pharmaceutical Fine Chemicals Business

May 4, 2006
Patricia Van Arnum

Patricia Van Arnum was executive editor of Pharmaceutical Technology.

ePT--the Electronic Newsletter of Pharmaceutical Technology

Clariant (Muttenz, Switzerland) has agreed to sell its pharmaceutical fine chemicals unit to the private equity firm TowerBrook Capital Partners LP (New York, NY) for CHF 110 million ($89 million). The price includes an earn-out participation of CHF 40 million ($32 million) to be paid in two years.

Clariant (Muttenz, Switzerland, www.clariant.com) has agreed to sell its pharmaceutical fine chemicals unit to the private equity firm TowerBrook Capital Partners LP (New York, NY, www.towerbrook.com) for CHF 110 million ($89 million). The price includes an earn-out participation of CHF 40 million ($32 million) to be paid in two years.

The unit manufactures building blocks, regulatory starting materials, intermediates, and active pharmaceutical ingredients for both the innovative and generic pharmaceutical industries.

Clariant's pharmaceutical fine chemicals business unit had 2005 sales of CHF 210 million ($169 million). The business includes the former fine chemicals activities of BTP PLC, which Clariant acquired in 2000.

The deal is expected to close in the second quarter of 2006. The new company will include 800 employees and be headquartered in Frankfurt, Germany.

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