By KAMLESH BHUCKORY
AECI, South Africas biggest explosives and chemicals
maker, agreed to buy a water-treatment unit from Clariant for
409 million rand ($36.7 million) to expand in the region and
tap demand for treating industrial waste water.
AECI will pay cash for the business, which generated about
$45 million in sales last year, Muttenz, Switzerland-based
Clariant said in a statement today.
AECI will use the deal to build on its ImproChem division,
which used the 2012 acquisition of GE's chemical and
monitoring solutions business to help build a platform for
water-treatment sales in Africa and the India
This footprint will be enhanced since ImproChems
direct sales capability in many African countries will enable
it to leverage Clariants penetration of these
markets, AECI chief executive Mark Dytor said in a
statement from the Johannesburg-based company.
AECI is shifting from a reliance on South Africas
mining industry to focus on higher-margin products including
water treatment. The Clariant unit will add both industrial
and municipal-water customers.
The deal includes a 50% shareholding in Blendtech,
Clariants South African black economic partner.