3 May 2018
BASF offers a comprehensive range of chemicals
for the paper and water industry.
Its paper chemicals portfolio comprises
dry strength agents, fixing agents, retention and drainage aids,
flocculants and coagulants for water management.
Furthermore, BASF offers
basic dyes, direct dyes, sizing agents, pigment preparations,
wet strength agents and color developers for thermal paper.
The water chemicals portfolio includes products used
in the key processes of industrial and municipal water treatment.
BASF’s paper and water chemicals business
supplies chemicals
* to purify the raw water used to produce drinking water,
* to treat waste water streams and industrial process water,
* to protect cooling towers, boilers and desalination plants.
The paper and water chemicals business is part of
BASF’s Performance Chemicals division
reported in the Performance Products segment.
Solenis is a global producer of specialty chemicals
for water intensive industries, including
the pulp, paper, oil and gas, chemical processing,
mining, biorefining, power and municipal markets.
The company’s product portfolio includes
a broad array of process,
functional and water treatment chemistries
as well as state-of-the-art monitoring and control systems.
Headquartered in Wilmington, Delaware, USA,
the company has 35 manufacturing facilities
strategically located around the globe
with approximately 3,700 employees in 118 countries.
DETAILS
BASF and Solenis have signed an agreement
to join forces by combining
BASF’s paper wet-end and water chemicals business
with Solenis.
The combined entity
with pro-forma sales of around €2.4 billion
and around 5,000 employees in 2017
aims to deliver additional value
for paper and water treatment customers.
The goal is to create
a customer-focused global solutions provider
for the industry.
For the paper industry, the product portfolio
of the combined enterprise will cover
the entire range of functional
and process wet-end chemicals,
solutions for the water cycle for paper mills,
as well as comprehensive service capabilities.
For the water treatment industry, the customers
of the joint organization will benefit from
Solenis’ high-quality service capabilities
and BASF’s broad water treatment chemicals platform.
Pending approval by the relevant authorities,
closing is anticipated for the end of 2018 at the earliest.
Financial terms of the transaction are not being disclosed.
BASF will hold a 49% share of the combined entity
that will operate under
the Solenis name
and be headquartered in Wilmington, Delaware, USA.
BASF will nominate
three out of seven shareholder representatives
of the joint entity that will continue to be led by
current President and Chief Executive Officer
John E. Panichella of Solenis.
51% of the shares will be held by funds managed
by Clayton, Dubilier & Rice.
The transaction comprises
BASF’s global paper wet-end
with 2017 sales of around €800 million
and around 1,300 employees globally.
The transfer includes production sites and plants
of the paper wet-end and water chemicals business in
* Bradford and Grimsby, UK;
* Suffolk, Virginia, USA;
* Altamira, Mexico;
* Ankleshwar, India,
* and Kwinana, Australia.
BASF’s paper and water chemicals production plants
strongly embedded
in the Verbund
in Ludwigshafen, Germany, and Nanjing, China,
are not transferred,
and will deliver products and raw materials
to the combined entity
under mid- to long-term supply agreements.
BASF’s paper coating chemicals portfolio
is not part of the transaction.
Anup Kothari,
President of BASF’s Performance Chemicals division
“We will remain committed
to the paper and water treatment industries
through our 49% ownership
of the combined entity and
bring our excellent technologies, products,
and production processes.
Combined with Solenis’ service capabilities,
we will create additional value for our customers.
They will benefit from our joint innovation activities,
complementary state-of-the-art product portfolios,
and dedicated service and application support,”.
CEO of Solenis
“Together, we have a unique opportunity to create
a customer-focused global specialty chemical company
with an enhanced focus and expanded offerings.
I am pleased that our cultures are closely aligned
and that our companies share a strong common desire
to create value for our customers.
Together, as one team of experts, we will continue
to strive towards excellence
in innovation, sustainability and safety,”.
Contact BASF
Thomas Nonnast
Media Relations
Dr. Stefanie Wettberg
Senior Vice President
Investor Relations
FOR FURTHER INFORMATION:
Media Relations
Catherine (Katy) Abernathy
+1 904 256 0333
cmabernathy@solenis.com
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