Kemira Oyj and Rockwood Holdings Inc. have today signed an agreement, according to which Rockwood buys Kemira's share (39%) of the titanium dioxide joint venture Sachtleben GmbH. The transaction price of the deal is EUR 97.5 million and will impact Kemira's cash flow positively in the first quarter of 2013. Kemira will undertake a non-recurring write-down related to the transaction of approximately EUR 25 million, impacting Kemira's reported EBIT in the first quarter of 2013.
The joint venture Sachtleben GmbH, which was established in September 2008 by combining Kemira Oyj's and Rockwood Holdings Inc's TiO2 businesses, is a leading producer of specialty TiO2 pigments for the synthetic fiber, packaging inks, cosmetics, pharmaceutical and food industries.
- Ever since establishing the joint venture in September 2008, we have clearly communicated that this is a non-core asset for Kemira. I am happy that we are now able to finalize the exit of the business in a manner that is a good fit for both parties of the joint venture. This divestment is again another milestone in implementing our water strategy and it frees up resources both in terms of management capacity and financing capabilities to fully focus on both, growth as well as the delivery of the announced "Fit for Growth" restructuring measures, said Wolfgang Büchele, Kemira's President and CEO.