Kemira Oyj has signed an agreement to sell its formic acid business, including the feed and the airport runway de-icing product lines, to Taminco Corporation.
The businesses sold had combined revenue of approximately Euro140 million (US$192.2 million) in 2012. The transaction includes a manufacturing asset for formic acid in Oulu, Finland, and approximately 160 employees will transfer to Taminco. The transaction is subject to the fulfillment of customary closing conditions, and the closing is expected during the first quarter in 2014.
Sodium percarbonate, the remaining business within the ChemSolutions segment, will stay within Kemira and will be reported as part of the paper segment. After the transaction has closed, the ChemSolutions segment will be discontinued.
After the divestment of the formic acid business, Kemira will become a purely water-focused chemical company based on three segments: paper, oil and mining, and municipal and industrial. After the successful execution of several non-core divestments in 2013, Kemira's management resources and financing capabilities will be fully focused on growth and profitability improvement in the core businesses, said Wolfgang Büchele, Kemira's president and CEO.