Clariant divests healthcare packaging business

The sale is expected to close by the end of this year at an amount of close to Rs 2156.9-crore.

The total monetary considerations regarding the transaction are equivalent to 13.2 times to the company’s adjusted FY2018 EBITDA. Currently, the deal is subjected to customary conditions and approvals.

The healthcare packaging business offers products used to protect pharmaceutical products from moisture and oxygen, which includes customisable, drop-in products such as canisters and packets, integrated desiccant systems and specially designed plastic bottles containing oxygen barrier materials.

In 2018, the healthcare packaging business generated sales of around Rs 945-crore. The business has manufacturing facilities in the US, France, China and India and employs around 600 employees.

Clariant holds a healthcare packaging plant in Cuddalore in Tamil Nadu that manufactures products, which are inserted into pharmaceutical packaging to control moisture and protect the stability of the medicine during shelf life. It has recently added the production of desiccant packets to its healthcare packaging business.