South Africa explosives and specialty chemicals group AECI is expanding its reach into Africa by acquiring Clariant’s business on the content.

Through its subsidiary ImproChem Proprietary Limited, AECI has agreed to buy Clariant Southern Africa Proprietary Limited’s water treatment business in Africa for R409 million.

“The divestment is a result of our continuous active portfolio management. The Water Treatment business does no longer meet our positioning as a globally leading company in all of our businesses. Although Water Treatment is an overall attractive industry and the business is well positioned in Africa, Clariant has decided to identify a better owner who is able to focus on this service driven activity”, says Clariant CEO Hariolf Kottmann.

As part of the deal, ImproChem will acquire Clariant’s South African assets and a 50% shareholding in Clariant’s B-BBEE partner in South Africa, Blendtech.The deal forms part of AECI’s strategy to extend its presence in Africa in the provision of water treatment solutions for a broad range of industrial and municipal customers.

“ImproChem has established a footprint on the continent…. On completion of the Clariant acquisition, which will also be merged with ImproChem, this footprint will be enhanced since ImproChem’s direct sales capability in many African countries will enable it to leverage Clariant’s penetration of these markets,” says Dytor.