Stock Exchange Release
November 29, 2013 at 4.00 pm (CET+1)
Kemira and Bauminas have signed a contract today according to which Kemira sells its Brazilian iron and aluminium coagulant business to Bauminas. The deal includes coagulant business related assets, liabilities and personnel of Kemira WaterSolutions Brazil Ltda and shares of Nheel Quimica Ltda as well as its three coagulants manufacturing sites in Brazil (Rio Claro, Araporti and Lages).
The sold businesses have combined reported revenue of approximately EUR 50 million, mainly in Kemira's Municipal & Industrial segment. 193 employees will be transferred to Bauminas as part of the transaction. The transaction is subject to fulfillment of certain conditions and the closing is still expected during the fourth quarter of 2013.
The parties have agreed not to disclose the transaction price. The transaction proceeds are expected to have a positive impact on Kemira's cash flow at closing. Kemira will undertake a non-recurring write-down related to the transaction of approximately EUR 40 million, impacting Kemira's reported EBIT in the fourth quarter of 2013.
"The divestment of our coagulant business in Brazil is well in line with our focus on profitability improvement and cash flow maximization in the Municipal & Industrial segment. Kemira's strategy continues to be focused on those businesses and geographies, where we can achieve a sustainable competitive market position in combination with growth. Exiting the coagulants business in Brazil will further improve the EBIT margin in the Municipal & Industrial segment and will have a positive cash flow impact as well. Brazil will remain an important market for Kemira, especially for the chemicals used in the pulp and paper industry" said Wolfgang Büchele, Kemira's President and CEO.
For more information, please contact
Frank Wegener, President, Municipal & Industrial segment
+49 171 588 8107
Jukka Ryhänen, Director, Mergers & Acquisitions
+358 50 525 2354
Tero Huovinen, VP, Investor Relations
+358 10 862 1980
Kemira is a global chemicals company serving customers in water-intensive industries. We provide expertise and chemicals that improve our customers' water, energy and raw material efficiency. Our focus is on pulp & paper, oil & gas, mining and water treatment. In 2012, Kemira had annual revenue of EUR 2.2 billion and around 4,900 employees. Kemira shares are listed on the NASDAQ OMX Helsinki Ltd. Link to the release