Japan’s Kurita Water Industries, a leading water treatment company, has entered into an agreement for acquisition of Germany-based aluminium, paper chemicals and water treatment units from ICL, a global manufacturer of speciality mineral products.

The transaction will be for consideration of approximately EUR250 million ($316 million). The closing of the transaction is expected to occur at the end of 2014, subject to the completion of certain conditions precedent, including receipt of approvals by authorities, as well as the agreement of a minimum number of APW employees to become employees of Kurita, according to the statement.

The APW (aluminium, paper chemicals and water treatment) business units based in Ludwigshafen and Dusseldorf produce active ingredients, formulations and customised water treatment solutions for use by industries and municipalities.

The agreement includes Kurita's purchase of ICL PP's chemical additives business for the paper industry and related aluminium compounds produced by ICL PP at its facilities located in Ludwigshafen and Dusseldorf, Germany, as well as at additional ICL PP venues in Europe and China.

The purchase of the APW business is in line with Kurita's growth strategy. The combination of ICL's water solutions business with Kurita's water technologies will help Kurita develop a more advanced platform to collectively build a global footprint.

The paper solutions business will accelerate Kurita's expansion of its product offering into new markets through existing relationships. The alumina compounds business' technologies for inorganic coagulant, together with Kurita's sensing technologies, will enable Kurita to provide optimal solutions for alumina coagulant to new and existing customers.

Toshiyuki Nakai, president of Kurita said: "Through this transaction, Kurita acquires APW's diverse product portfolio and broad customer base in Europe, as well as other regions. Combining Kurita's existing customer base, which is mainly in Japan and the Asia region, with APW's customer base, will further strengthen Kurita's overseas business platform.”

“APW's experienced sales force and long-term relationship with blue chip customers in Europe will support Kurita's ambition to become a leading global player.

“In addition, Kurita views APW's technologies and products as highly complementary with those of Kurita, and believes that various synergies will be generated through the development of new products and services which will contribute to Kurita's mid to long-term growth,” he added.

ICL president & CEO Stefan Borgas, said: "ICL is executing its strategy by focusing on its core business, and it will use the proceeds from the sale of APW, as well as from the divestment of additional non-core assets, to strengthen ICL's core businesses in the agriculture, food and engineered materials markets, pursue operational excellence, build out ICL's distinctive mineral assets and technologies, and expand our global presence, especially in emerging markets.”

“We are gratified to enter into an agreement to sell our APW business units to a highly suitable company such as Kurita. This transaction is opportune not only for ICL and Kurita, but also for APW's dedicated and talented team of employees,” he added. – TradeArabia News Service