ICL sell fire safety oil additives business $1 billion
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ICL to sell fire safety and oil additives business for $1 billion

9:24 AM, 7th December 2017
ICL to sell fire safety and oil additives business for $1 billion
ICL's fire safety business unit is a leading supplier of chemicals and services for fighting wild fires, and class A&B foams to extinguish fires. (File photo)

TEL AVIV, ISRAEL: Israel Chemicals Ltd (ICL) has agreed to sell its fire safety and oil additives (P2S5 or phosphorus pentasulfide) business units to SK Capital, for approximately $1 billion.

The business is part of ICL Specialty Solutions' advanced additives business line and has operations in North and South America, Europe, Australia and Asia.

The sale is expected to close in the first half of 2018.

ICL's major research and development capabilities in speciality chemicals, as well as its ability to identify business opportunities, have transformed the company into a global leader in several core and non-core businesses.

The business became part of ICL in 2005 and was transformed into a global leader through organic growth and complementary acquisitions. ICL's fire safety business unit is a leading supplier of chemicals and services for fighting wildfires, and class A&B foams to extinguish fires. ICL's oil additives business unit products are used in the manufacture of lubrication oil additives, mining chemicals and pesticides.

"This sale constitutes another step towards fulfilling the targets of focusing ICL's businesses and selling low synergy assets. The divestment will reduce debt leverage, and provide flexibility for the development of innovation and growth in ICL's speciality products and in precision agriculture," said Johanan Locker, executive chairman, ICL.

"The sale is yet another important milestone, as part of our efforts to streamline our business and solidify our capital structure. During the past year, we continued to grow our speciality businesses while carefully managing our capital allocation. These measures were reflected in our financial results, which have demonstrated how ICL benefits from its unique business model. We are confident the fire safety and the oil additives businesses will continue to grow and prosper under SK Capital, and we wish the management team and our long-time employee's much success in the future," added Asher Grinbaum, ICL's acting CEO.

BofA Merrill Lynch acted as exclusive financial advisor to ICL and Latham & Watkins LLP acted as legal counsel to ICL.

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