Specialty chemicals company Nouryon says it intends to spin out its base chemicals business, Nobian, into a separate company that will remain under the ownership of Nouryon’s equity owners, The Carlyle Group and GIC. The separation is expected to be completed by early third quarter, following the receipt of all relevant approvals including final board approval. Nouryon reportedly intends to reduce its own debt with proceeds received from a planned external financing by Nobian.
When completed, the transaction will result in two separate companies:
- Nouryon, a global provider of sustainable offerings for manufacturing everyday products. These include personal care, cleaning goods, paints and coatings, agriculture and food, pharmaceuticals and building products. The company says it employs about 7,900 people (excluding Nobian) in over 80 countries and had revenues in 2020 of €3.7 billion.
- Nobian, a European producer of essential base chemicals for industries ranging from construction and cleaning to pharmaceuticals and water treatment. The company reportedly employs about 1,600 people and had revenues in 2020 of €1.0 billion.
Following the intended separation, Nobian’s board of directors will be comprised of members from Carlyle, GIC and Nouryon’s executive leadership team. Nobian will continue to pursue its current strategic path as it evolves to a stand-alone company. To help ensure a seamless transformation, Nouryon says it will provide transitional support services across multiple functional areas.
For more information, visit: www.nouryon.com