Israel Chemicals Ltd. is selling segments of its ICL Performance Products division to Japan’s Kurita Water Industries Ltd. for €250 million. The company said late Sunday it expected the deal would close at the end of 2014. The sale involves the company’s aluminum, paper chemicals and water treatment units based in Ludwigshafen and Düsseldorf, Germany, as well as at additional ICL PP operations in Europe and China. However, ICL corrected earlier reports, saying while it is making this sale, it is not selling the entire Performance Products unit.
ICL said the move was part of its effort to focus on its core businesses in the agriculture, food and engineered materials markets. The move is expected to further increase ICL’s dependence on fertilizers which account for more than 50 percent of its revenues and an even greater share of its profits.
“Israel Chemicals is executing its strategy of focusing on its core business, and will use the proceeds of the sale, as well as the divestment of additional non-core assets, to strengthen its core business in the agriculture, food and engineered materials markets,” said Stefan Borgas, Israel Chemicals president and CEO. He said the company will build on its distinctive mineral assets and technologies and expand its global presence, especially in emerging markets.
The announcement of the sale comes less than a week after an Israeli government appointed committee recommended imposing a windfall tax on profits of ICL and other companies utilizing the country’s natural resource ICL has sharply criticized the recommendations and has said they will lead to reducing investments in Israel and greater investment abroad.