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MOSCOW (MRC) -- BASF and the fine
chemical company DIC have reached an agreement on the acquisition of BASF’s
global pigments business. The purchase price on a cash and debt-free basis is
EUR1.15 billion, as per BASF's press release.
The transaction is
expected to close in the fourth quarter of 2020. The divestiture is subject to
the approval of the relevant competition authorities.
"We have achieved
our goal to find an owner who considers pigments a core strategic business,"
says Dr. Markus Kamieth, member of the Board of Executive Directors of BASF SE,
responsible for the Industrial Solutions segment. "DIC pursues ambitious growth
plans and has announced to further develop the business in the coming years. We
are convinced that the pigments business will be able to unfold its full
potential within DIC."
DIC is a Japanese company listed at the Tokyo
Stock Exchange with about 20,000 employees globally. The company headquartered
in Tokyo was founded in 1908, is active in more than 60 countries and generated
sales of approximately 800 billion yen in 2018. This corresponds to about ˆ6.8
billion. Under the slogan "Color & Comfort," DIC is active in three
segments: Packaging & Graphics, Functional Products and Color & Display.
Color & Display includes a portfolio of pigments.
"We have outlined a
clear growth path for DIC with the target to increase our sales to 1 trillion
yen, i.e. approximately EUR8 billion, by 2025. In this context, BASF’s pigments
portfolio is an important strategic addition in meeting our goals more
expeditiously. It will allow us to expand our position as one of the leading
pigment suppliers globally and offer our customers even more versatile
solutions," Kaoru Ino, President and Chief Executive Officer of DIC comments on
the agreement reached.
For Dr. Alexander Haunschild, Senior Vice
President and Managing Director at BASF’s pigment-focused subsidiary BASF Colors
& Effects, the agreement is a chance to continue the growth path started in
2016: "We see DIC as an owner who is willing to invest, committed to innovations
and interested in the longer term success of the business."
Myron
Petruch, DIC Executive Officer and Chief Executive Officer of DIC’s group
company being active in the pigments market, Sun Chemical, adds: "As a
long-standing business partner of BASF, we value the expertise and engagement of
BASF’s employees in the pigments business. By combining our businesses, DIC/Sun
confirms the ambition to be one of the most innovative pigment suppliers
globally."
BASF’s pigments business with around 2,600 employees globally
generated sales of approximately EUR1 billion in 2018.
As MRC reported earlier,
in December 2016, AkzoNobel finalized the acquisition of BASF’s global
Industrial Coatings business, which supplies a range of products for industries
including construction, domestic appliances, wind energy and commercial
transport, strengthening its position as the global number one supplier in coil
coatings.
BASF is the leading chemical company. It produces a wide range
of chemicals, for example solvents, amines, resins, glues, electronic-grade
chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The
most important customers for this segment are the pharmaceutical, construction,
textile and automotive industries. BASF generated sales of around EUR63 billion
in 2018. |
