Tel Aviv-headquartered Israel Chemicals Ltd. (ICL) announced Thursday a deal to sell its fire safety and oil additives divisions to SK Capital Partners. LP, a private equity firm headquartered in New York. The sale is expected to close in the first half of 2018.
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The businesses to be sold have operations spread across North and South America, Europe, Australia and Asia, ICL said.
ICL is dual-listed on NYSE and the Tel Aviv Stock Exchange.
ICL’s fire safety business line makes chemicals and services to fight wildfires as well as fire-fighting foams. The company’s oil additives line makes products that go into lubrication oil additives, mining chemicals and pesticides. These units generated $294 million in sales and $112 million to operating profits for the 12-month period ending September 30, 2017.
The company said it is offloading the business units because of “low synergies” with its core mineral operations.
As part of a strategy to focus on core business, reduce debt, and raise funds for new growth initiatives, ICL is also trying to sell its 50% stake in desalination and water treatment company IDE Technologies.
ICL is controlled by its largest shareholder, Tel Aviv-listed Israel Corporation Ltd.