Clariant North America acquires defoamer business
Three months ago, Clariant USA fomed an exclusive strategic alliance to service the world-wide foam control market, they have now announced that they will acquire XL Performance Chemicals from Fibro Chem LLC. The terms of the deal have not been disclosed.
The aquisition has been made by Clariant's Functional Chemicals Division and although claims are made for Clariant's ability to now service the global foam control market, the reality is that any impact of the acquisition is likley to be in the Functional Chemicals Division and North America - Clariant does not have a good track record of working across divisional 'silos' or in exploting regional sucesses world-wide.
In the paper business Clariant does not have a presence or reputation in the process chemicals market so would be at a distinct disadvantage were it to try to use its current business model to exploit the defoamer market. Clariant essentially has two functional paper product ranges - speciality dyes and commodity fluorescent whitening agents.
The future manufacture of the acquired foam control agent products will continue in Greenville SC, USA under a toll manufacturing agreement. As the business develops, Clariant has the option to transfer production world-wide and use its own facilities.
Clariant's share price has continued to edge upwards from the rock bottom CHF3.71 on March the 9th to just above CHF7 today - a good increase for the short-term trader but far short of the CHF20 range in mid 2007. As we have stated before, this is a watershed year for Clariant.
