Orica sells chemical division

Orica has sold its chemicals business to private equity groups for $750 million.

The manufacturer, which produces explosives, mining equipment, and chemicals, has entered into an agreement to sell off the chemicals division to a group of funds advised by Blackstone.

The sale includes businesses in Australia, New Zealand, and Latin America, as well as its Australian Chlorakali manufacturing businesses.

“It also includes Bronson & Jacobs, which is a supplier to the food & nutrition and health & personal care industries in Australia, New Zealand, and Asia,” Orica added.

The divestment of its assets leaves the company more focused on its mining chemicals, mining services, and ground support divisions.

The move comes after Orica announced the completion of its strategic review in August, where it notified the market it would undertake a sale or demerger of its chemicals business.

As part of this sell-off Orica will retain responsibility for legacy environmental remediation obligations of the chemical business.

This announcement comes as the company releases its full year results, recording a $602.5 million NPAT for the year.