IMD-3-2045 © 2009
Leleux, Benoit F.; Chakravarthy, Bala; Lachowitz, Jonathan
It was a call from Ken Greatbatch, the previous CFO of Vantico, with extremely intriguing news: Clariant's effort to auction off its running department, AZ Electronic Materials (AZ-EM), had actually failed. Clariant required to make the offer take place, and quickly; it had actually assured investors and experts throughout the summertime of 2003 that it would lower its financial obligation level by practically EUR800 million.
To dispose off its department, Clariant had actually at first crafted an auction amongst AZ-EM's closest rivals, however had actually not been successful in discovering an appropriate purchaser. Faced with the unsuccessful auction, enhanced pressure from investors and a clear requirement to raise money quickly, Clariant resorted to its second-best choice-- a worked out sale with a competent personal equity purchaser.
Subjects: Buyout; Private equity; Turnaround; Leverage; Chemical industry; Incentive structures
Settings: Switzerland ; Speciality chemicals; Electronics ; Mkt Cap.: CHF 500 million ; 2004-2009
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