25. Discontinued Operations and Assets Held for Sale
Audited information- Index
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In 2019 Clariant announced its intention to sell the Business Units Pigments and Masterbatches and the Business Line Healthcare Packaging, which operated as a part of the Business Unit Masterbatches. As a result these activities were reclassified to discontinued operations in June 2019. Income and expenses of the activities concerned have been reclassified to “Discontinued operations” in the consolidated income statement and the assets and liabilities pertaining to these activities have been reclassified to “Assets held for sale” and “Liabilities directly associated with assets held for sale” in the consolidated balance sheet, according to IFRS 5, Non-current assets held for sale and discontinued operations.
On 31 October 2019, Clariant sold its Healthcare Packaging business to Arsenal Capital Partners, a private equity firm located in New York, USA. The final total consideration of the sale amounted to CHF 312 million including CHF 2 million received in 2020 and the after tax gain to CHF 54 million.
On 1 July 2020, Clariant sold the business unit Masterbatches to the US-based group Avient. The total consideration of the sale net of cash transferred amounted to CHF 1 308 million and the after tax gain to CHF 723 million.
Clariant considers it highly probable that the Business Unit Pigments will be sold within the next twelve months.
For a description of the Business Units please refer to note 1.25.
Other assets held for sale
An amount of CHF 6 million relates to property, plant and equipment held for sale in Italy and in United States (2019: CHF 7 million) and CHF 108 million a shareholding valued at equity in the US.
in CHF m |
|
Plastics & Coatings (discontinued)1 |
|
Corporate |
|
Total discontinued operations |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||
Sales |
|
1 330 |
|
2 127 |
|
— |
|
— |
|
1 330 |
|
2 127 |
|||
Operating expenses |
|
–1 189 |
|
–1 968 |
|
–69 |
|
–92 |
|
–1 258 |
|
–2 060 |
|||
Income from associates and joint ventures |
|
21 |
|
19 |
|
— |
|
— |
|
21 |
|
19 |
|||
Restructuring (see note 28) |
|
–23 |
|
–10 |
|
–69 |
|
— |
|
–92 |
|
–10 |
|||
Operating result |
|
139 |
|
168 |
|
–138 |
|
–92 |
|
1 |
|
76 |
|||
Financial result |
|
|
|
|
|
|
|
|
|
–8 |
|
–17 |
|||
Result from discontinued operations before taxes |
|
|
|
|
|
|
|
|
|
–7 |
|
59 |
|||
Taxes |
|
|
|
|
|
|
|
|
|
–36 |
|
–38 |
|||
Result from discontinued operations after taxes |
|
|
|
|
|
|
|
|
|
–43 |
|
21 |
|||
Gain on the disposal of discontinued operations |
|
768 |
|
48 |
|
|
|
|
|
768 |
|
48 |
|||
Taxes (current and deferred) |
|
–42 |
|
3 |
|
|
|
|
|
–42 |
|
3 |
|||
Net result from discontinued operations |
|
|
|
|
|
|
|
|
|
683 |
|
72 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Currency translation differences of discontinued operations |
|
|
|
|
|
|
|
|
|
50 |
|
–39 |
|||
Other items |
|
|
|
|
|
|
|
|
|
20 |
|
6 |
|||
Other comprehensive income/loss from discontinued operations |
|
— |
|
— |
|
— |
|
— |
|
70 |
|
–33 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Operating cash flows |
|
154 |
|
107 |
|
–62 |
|
–12 |
|
92 |
|
95 |
|||
thereof: payments for restructuring |
|
–7 |
|
–8 |
|
|
|
|
|
–7 |
|
–8 |
|||
Investing cash flows |
|
–25 |
|
–49 |
|
|
|
|
|
–25 |
|
–49 |
|||
Total cash flow |
|
129 |
|
58 |
|
–62 |
|
–12 |
|
67 |
|
46 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Cash flow from disposals: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Gross proceeds |
|
1 450 |
|
310 |
|
|
|
|
|
1 450 |
|
310 |
|||
Less cash and cash equivalents transferred |
|
–140 |
|
–15 |
|
|
|
|
|
–140 |
|
–15 |
|||
Less refund transaction cost to buyer |
|
–5 |
|
— |
|
|
|
|
|
–5 |
|
— |
|||
Net proceeds from disposal |
|
1 305 |
|
295 |
|
— |
|
— |
|
1 305 |
|
295 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net assets held for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Property, plant and equipment |
|
174 |
|
370 |
|
|
|
|
|
174 |
|
370 |
|||
Right-of-use assets |
|
17 |
|
34 |
|
|
|
|
|
17 |
|
34 |
|||
Intangible assets |
|
31 |
|
85 |
|
|
|
|
|
31 |
|
85 |
|||
Investments in associates and joint ventures |
|
84 |
|
101 |
|
|
|
|
|
84 |
|
101 |
|||
Deferred and Income tax assets |
|
29 |
|
22 |
|
|
|
|
|
29 |
|
22 |
|||
Inventories |
|
186 |
|
319 |
|
|
|
|
|
186 |
|
319 |
|||
Trade receivables |
|
127 |
|
303 |
|
|
|
|
|
127 |
|
303 |
|||
Other assets |
|
35 |
|
64 |
|
|
|
|
|
35 |
|
64 |
|||
Total assets held for sale |
|
683 |
|
1 298 |
|
— |
|
— |
|
683 |
|
1 298 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Trade payables and other liabilities |
|
–132 |
|
–330 |
|
|
|
|
|
–132 |
|
–330 |
|||
Retirement benefit obligations |
|
–40 |
|
–148 |
|
|
|
|
|
–40 |
|
–148 |
|||
Provisions |
|
–64 |
|
–52 |
|
|
|
|
|
–64 |
|
–52 |
|||
Lease liabilities |
|
–14 |
|
–29 |
|
|
|
|
|
–14 |
|
–29 |
|||
Current financial debts |
|
–13 |
|
— |
|
|
|
|
|
–13 |
|
— |
|||
Total liabilities directly associated with assets held for sale |
|
–263 |
|
–559 |
|
— |
|
— |
|
–263 |
|
–559 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total net assets held for sale |
|
420 |
|
739 |
|
— |
|
— |
|
420 |
|
739 |
|||
|
|||||||||||||||
Cumulative exchange rate differences recognized in equity for discontinued operations amounted to CHF 92 million on 31 December 2020.
Healthcare Packaging
In October 2019 Clariant sold the business line Healthcare Packaging. The results of these disposal was as follows:
in CHF m |
|
2020 |
|
2019 |
|---|---|---|---|---|
Total cash proceeds received |
|
2 |
|
310 |
Less cash and cash equivalents transferred |
|
— |
|
–15 |
Total consideration for the sale |
|
2 |
|
295 |
Net assets sold including disposal related expenses |
|
1 |
|
–232 |
Gain on the disposal from discontinued operations |
|
3 |
|
63 |
Effect of the reclassification of foreign exchange differences related to the disposal of discontinued operations |
|
— |
|
–15 |
Gain on the disposal from discontinued operations before taxes |
|
3 |
|
48 |
Taxes (current and deferred) |
|
— |
|
3 |
Gain on the disposal from discontinued operations after taxes |
|
3 |
|
51 |
Masterbatches
In July 2020 Clariant sold the business unit Masterbatches to the US-based group Avient. The result of this disposal was as follows:
in CHF m |
|
2020 |
|---|---|---|
Purchase price consideration |
|
1 448 |
Less cash and cash equivalents transferred |
|
–140 |
Total consideration for the sale |
|
1 308 |
Net assets sold including disposal related expenses |
|
–411 |
Gain on the disposal from discontinued operations |
|
897 |
Effect of the reclassification of foreign exchange differences related to the disposal of discontinued operations |
|
–132 |
Gain on the disposal from discontinued operations before taxes |
|
765 |
Taxes (current and deferred) |
|
–42 |
Gain on the disposal from discontinued operations after taxes |
|
723 |
Pigments are substances used for coloring; they are used in a technical manner, for example in the manufacture of dyes, varnishes, and plastics. View entire glossary
These are plastic additives in the form of granules with dyestuffs or other additives used to dye or alter the properties of natural plastic. View entire glossary
The International Financial Reporting Standards (IFRS) are international accounting standards. View entire glossary
These are plastic additives in the form of granules with dyestuffs or other additives used to dye or alter the properties of natural plastic. View entire glossary