Follwing due diligence, the partners agreed to value the US-headquartered JV at $260 million, with Clariant’s 50% share thus worth $130 million. Coupled with a profit-sharing agreement that began on Jan. 1, 2021 and will end with the transaction’s closing, Clariant said this represents an attractive valuation for its stake at around 12 times Scientific Design’s 2021 expected EBITDA, assuming a mid-2022 closing.

For 2020, Scientific Design, based in Little Ferry, New Jersey, reported sales of 121 million Swiss francs. The company is engaged in the development, licensing and catalyst supply of proprietary processes for the production of ethylene oxide (EO), ethylene glycol (EO/EG), bio-ethylene, bio-EO, bio-EG, EO derivatives, polyols and maleic anhydride. It also produces proprietary catalysts and equipment for use in its own and other industrial processes.

Author: Dede Williams, Freelance Journalist