H&R WASAG sells explosives activities to Maxam/Pravisani
Focus on chemical-pharmaceutical specialty products intensified
H&R WASAG AG has sold its explosives Division to the Spanish-Italian Explosives group Maxam/Pravisani. The share purchase agreement was signed and entails the immediate transfer of shares in the Group companies Westspreng GmbH and WANO Schwarzpulver GmbH. The purchase price is based upon an enterprise value in excess of EUR 80 million.
The specialty chemicals group based in Salzbergen looks forward to a substantial improvement in its balance sheet ratios as a result of the sale. The equity ratio in particular will undergo a sustained uplift, and the level of net debt will undergo a major reduction.
The explosives and plastics divisions with their earnings and cashflows have in the past formed key pillars of the Group's risk strategy by balancing the impact of the crude oil price on the refinery business, and thereby stabilizing the Group's overall earnings base.
According to the company, the activities of the Chemical-Pharmaceutical Raw Materials Division, which are characterized by a high degree of dependence on the development of the crude oil price, have in the meantime reached a volume that effectively provides a hedge against the effects of a volatile oil market within the division. This allows peripheral activities to be sold, leading to a reduction in the complexity of the specialty chemicals group, and a more defined corporate profile.
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