Israel Chemicals Ltd (ICL) today struck a deal to sell its fire safety and oil additives units to New York-based private equity firm 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.
The sale is expected to close in the first half of 2018 subject to regulatory approvals.
The units being sold are ICL fire safety unit and oil additives unit.
ICL's fire safety unit is a supplier of chemicals and services for fighting wild fires and foams to extinguish fires, while its oil additives are used in the manufacture of lubrication oil additives, mining chemicals and pesticides.
In the 12 months ended 30 September 2017, the units contributed $294 million to ICL's sales and $112 million to operating income.
The decision to sell the units are in line with ICL's previously announced strategy to divest low synergy business and focus on its mineral chains, reduce debt and generate funds for growth, the company said in a statement.
ICL is currently in the process of completing its previously announced sale of its 50 per cent stake in IDL Technologies.
''The sale is yet another important milestone, as part of our efforts to streamline our business and solidify our capital structure … we are confident the fire safety and oil additives will continue to grow and prosper under S K Capital,'' said, Asher Grinbaum, ICL's acting CEO.