Clariant, a focused, sustainable, and innovative specialty chemical company, announces that it has completed the acquisition of BASF’s U.S. based Attapulgite business assets for USD 60 million in cash. Structured as an asset deal, the transaction includes the transfer of land as well as mining rights, the processing facility, and inventories, which will be integrated into Clariant’s Functional Minerals business. The finalized deal also includes an agreement for the long-term supply of attapulgite-based products to BASF. The transaction will improve the EBITDA margin profile of Clariant’s Business Area Natural Resources while supporting the company’s path towards reaching its 2025 targets.
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Adsorbent clays, such as attapulgite, are an important enabler for growth in the purification of edible oils and renewable fuels. In edible oil they remove contaminants thereby enhancing the shelf-life and oil quality, whereas in renewable fuels they play a key role in removing contaminants during the pre-treatment process, thereby protecting the catalyst. This enables a particularly stable and economically viable process. Clariant offers unique technologies for the purification of biodiesel to reduce greenhouse gases in road transportation and for the purification of pyrolysis oil to enable the chemical recycling of plastics. With this acquisition Clariant’s Functional Minerals business will increase its production capacity and subsequently its footprint in the attractive North American market.
“This acquisition is a perfect example of our disciplined approach to bolt-on acquisitions as it provides tangible synergies, strengthens one of our core segments and brings us closer to our 2025 targets,” said Conrad Keijzer, Chief Executive Officer at Clariant. “At the same time, the acquisition is another step forward in the energy transition away from fossil-based fuels.”
The newly acquired attapulgite business is one of the largest miners and producers of attapulgite in North America. It encompasses mining operations in Georgia as well as Florida and processing operations in Quincy, Florida. This business is well recognized in the industry for its unique combination of mineral quality, mine reserve size, and strategic location. It produces attapulgite based products for a wide range of applications and end markets, and generated sales of approximately USD 36 million in 2020.