This site uses cookies to ensure the best viewing experience for our readers.
Israel Chemicals to Sell Fire Safety and Oil Additives Units for $1 Billion

Israel Chemicals to Sell Fire Safety and Oil Additives Units for $1 Billion

Private equity firm SK Capital has agreed to buy ICL’s business lines

Amir Rosenbaum | 13:57  07.12.2017
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.

For daily updates, subscribe to our newsletter by clicking here.

 

The businesses to be sold have operations spread across North and South America, Europe, Australia and Asia, ICL said.

ICL Chairman Johanan Locker Photo: Nimrod Glickman ICL Chairman Johanan Locker Photo: Nimrod Glickman ICL Chairman Johanan Locker Photo: Nimrod Glickman
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.
share on facebook share on twitter share on linkedin share on whatsapp share on mail

TAGS