BASF and fine chemical products company DIC have reached an agreement to acquire BASF's global pigment business. The transaction involved a cash and debt-free purchase price of € 1.15 billion. The transaction is expected to close in the fourth quarter of 2020. The transaction also needs to be approved by the relevant regulatory agency.
M & A cooperation, BASF's global pigment business
Dr. Markus Kamieth, member of the executive board of BASF Europe and responsible for the industrial solutions business area, said: "Our goal is to find a company with a core strategic business in pigments. DIC has an ambitious development plan, and Announce continued development of this business over the next few years. We are confident that the pigment business can fully unlock its development potential under the DIC umbrella. "
DIC is a Japanese company listed on the Tokyo Stock Exchange and has approximately 20,000 employees worldwide. Headquartered in Tokyo, the company was founded in 1908 and has operations in more than 60 countries around the world. 2018 sales were about 800 billion yen, equivalent to about 6.8 billion euros. Under the slogan "Chemistry creates color and comfort", DIC is active in three areas: packaging and graphic arts materials, functional products and color and display. Among them, the color and display business area includes pigment product portfolio.
Kaoru Ino, DIC's representative director and president's executive director, stated on the agreement: "DIC has a clear growth goal, which is to achieve a sales target of 100 billion yen, equivalent to about 8 billion euros, by 2025. In this context, BASF's pigment portfolio is an important strategic complement to us, helping DIC achieve its goals more quickly. This will help us expand our position as one of the world's leading pigment suppliers, and Provide our customers with more diverse solutions. "
Dr. Alexander Haunschild, senior vice president of BASF's pigments business and general manager of the global pigments brand Colors & Effects, noted that the agreement provides an opportunity for the business to continue its growth since 2016. Companies that invest and innovate. "
Myron Petruch, executive director of DIC and CEO of Sun Chemical, a group focused on the pigment market, added: "As a long-term business partner of BASF, we value the expertise and participation of BASF employees in the pigment business. By combining our Business, DIC and Sun Chemical are committed to being one of the most innovative pigment suppliers in the world. "