TEL AVIV, Dec 7 (Reuters) - Israel Chemicals (ICL) said it has agreed to sell its fire safety and oil additives units to SK Capital for about $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.
ICL’s fire safety unit supplies chemicals and services for fighting wild fires and foams to extinguish fires. Its oil additives are used in the manufacture of lubrication oil additives, mining chemicals and pesticides.
In the 12 months ended Sept. 30, 2017, the units contributed $294 million to ICL’s sales and $112 million to operating income.
The sale to SK Capital, a private investment firm focused on specialty materials, chemicals and pharmaceuticals, is expected to close in the first half of 2018.
The decision to sell the business is in line with ICL’s strategy to exit low synergy businesses as it focuses on its mineral operations and reducing debt ratios and generating funds for growth initiatives, the company said on Thursday. (Reporting by Tova Cohen; Editing by Susan Fenton)