Israel Chemicals Ltd. (ICL), a chemicals and fertilizer maker that mines the Dead Sea to produce minerals and potash, said Thursday it has entered an agreement for the sale of its fire safety and oil additives business to SK capital, an investment firm, for approximately $1 billion.
The fire safety and oil additives business is part of ICL Specialty Solutions’ Advanced Additives business line, and has operations in North and South America, Europe, Australia and Asia, ICL said. SK Capital is a New York-based private investment firm focused on specialty materials, chemicals and pharmaceuticals sectors.
ICL’s decision to sell the units is in line with the chemicals maker’s previously announced strategy to divest its low-synergy businesses, and focus the company’s operations on its mineral activities, cut debt and generate funds for growth initiatives, ICL said.
ICL’s fire safety unit is a supplier of chemicals and services for fighting wild fires and of foams to extinguish fires. ICL’s oil additives business line products are used to manufacture lubrication oil additives, mining chemicals and pesticides.
In the 12 months ended September 30, 2017, the units that have been sold contributed some $294 million to ICL sales, the company said in a filing to the Tel Aviv Stock Exchange.
The sale is expected to close in the first half of 2018, subject to permits.