Clariant to Acquire BASF's Attapulgite Business Assets

Clariant, a focused, sustainable and innovative specialty chemicals company, announced it has signed definitive agreements to acquire BASF's U.S. Attapulgite (attapulgite - clay minerals with a composition of hydrated magnesium-aluminum silicate) operating assets for USD 60 million in cash. The acquisition is subject to customary closing conditions and is expected to close in summer 2022. BASF's Attapulgite business unit, with mining and processing operations in Georgia and Florida and processing operations in Quincy, Florida, is among the largest attapulgite miners and producers in North America. The operation produces attapulgite-based products for a wide range of applications and end markets. BASF's business unit is well recognized in the sector for its unique combination of mineral quality, mine reserve size and strategic location. Clariant is a technology leader in the purification of edible oils and renewable fuels. The transaction will significantly increase the Business Unit's production capacity in North America and thereby enhance its ability to participate in the attractive North America market. Clariant offers unique technology for the purification of biodiesel, which reduces greenhouse gases in road transportation, and pyrolysis oil, which enables chemical recycling of plastics. The North America renewable fuel market, based on waste streams such as used cooking oils, tallow, animal fats and distiller's corn oil, is an attractive growth market. Adsorbent clays are a critical enabler for growth as they play a key role in the removal of contaminants during pre-treatment, thereby protecting the catalyst and providing a stable and economically viable process. Clariant CEO Conrad Keijzer said: "This acquisition fits very well with our growth strategy through sustainability-focused innovations and bolt-on acquisitions. This acquisition will nicely expand the footprint of our Functional Minerals business in North America and further strengthen Clariant's position in renewable fuel purification." Structured as an asset agreement with a cash acquisition price of USD 60 million, the transaction includes the transfer of land and mining rights, the processing facility and inventories to be integrated into Clariant's Functional Minerals Business Unit. Clariant looks forward to welcoming 75 highly qualified, dedicated employees. BASF's Attapulgite business unit realized approximately USD 36 million in sales in 2020. The transaction will be added to the Natural Resources EBITDA margin profile and will support Clariant on its path to recently announced 2025 targets. Customary closing procedures, including merger notification and clearance filings as well as real estate title work, are expected to result in closing of the transaction in summer 2022.