Nouryon, a global specialty chemicals leader, 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 Q3, following the receipt of all relevant approvals, including final Board approval. Nouryon 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, each well positioned for growth in their respective focus areas:
- Nouryon, a global leader providing essential, sustainable solutions for manufacturing everyday products. These include personal care, cleaning goods, paints and coatings, agriculture and food, pharmaceuticals, and building products. The company employs about 7,900 people (excluding Nobian) in over 80 countries and had revenues in 2020 of EUR3.7 billion.
- Nobian, a European leader in the production of essential base chemicals for industries ranging from construction and cleaning to pharmaceuticals and water treatment. The company employs about 1,600 people and had revenues in 2020 of EUR1 billion.
“In 2020, Nouryon announced a new company strategy to grow our leading positions and exceed our customers’ expectations by delivering innovative, sustainable solutions that meet society’s everyday needs. This intended spin-out is a logical next step for Nouryon and Nobian,” said Charlie Shaver, Chairman and CEO of Nouryon. “The separation will create two powerful, best-in-class companies, each owned by Carlyle and GIC, and each with a compelling and distinct strategic focus.”
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 will provide transitional support services across multiple functional areas.