Multinational chemical firm BASF will sell its subsidiary BASF Construction Chemicals to an affiliate of global private equity fund Lone Star for euro 3.17 billion on a cash and debt-free basis.
The deal will be completed by Q3 of 2020, subject to approval from relevant authorities.
Member of Board of Executive Directors BASF SE Saori Dubourg said,
Under the umbrella of Lone Star, the Construction Chemicals team can focus on a growth path with an industry-specific approach.
The BASF Construction Chemicals business operates production sites and sales offices in 60 countries and employs over 7000 people. It generated sales of euro 2.5bn in 2018.
Lone Star President of Europe Donald Quintin said that the BASF Construction Chemical business fit into their overall strategy and would complement their other investments in the construction materials sector.
Praising the quality manpower at BASF, Quintin said,
We highly value the industry-wide recognized knowledge and competence of BASF’s Construction Chemicals experts, backed by a strong track record in innovative products and a compelling R&D pipeline. We look forward to jointly pursuing a growth-oriented business approach.
In India, the BASF Construction Chemicals business is merged with the surface technologies sector. It generated sales of INR 484 crore in 2018–2019.