Global Equity Fund Buys BASF's Construction Chemical Unit

Originally published by: BASFDecember 21, 2019

The following article was produced and published by the source linked to above, who is solely responsible for its content. SBC Magazine is publishing this story to raise awareness of information publicly available online and does not verify the accuracy of the author’s claims. As a consequence, SBC cannot vouch for the validity of any facts, claims or opinions made in the article.

BASF and an affiliate of Lone Star, a global private equity firm, signed a purchase agreement for the acquisition of BASF’s Construction Chemicals business. The purchase price on a cash and debt-free basis is €3.17 billion. The transaction is expected to close in the third quarter of 2020, subject to the approval of the relevant competition authorities.

BASF logo with tagline we create chemistry

“Our aim was to find a new home for our Construction Chemicals business where it can leverage its full potential,” said Saori Dubourg, member of the Board of Executive Directors of BASF SE and responsible for the Construction Chemicals business. “Under the umbrella of Lone Star, the Construction Chemicals team can focus on a growth path with an industry-specific approach.”

“BASF’s Construction Chemicals business fits very well with our portfolio, complementing our investments in the construction materials industry,” said Donald Quintin, President of Europe at Lone Star. “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.”

With more than 7,000 employees, BASF’s Construction Chemicals business operates production sites and sales offices in more than 60 countries and generated sales of about €2.5 billion in 2018.

The signing of the agreement has immediate effect on the reporting of BASF Group. Retroactively as of January 1, 2019, sales and earnings of the Construction Chemicals division are no longer included in sales, EBITDA and EBIT before special items of BASF Group. The prior-year figures will be restated accordingly (BASF Group sales 2018 restated: €60.2 billion; EBITDA 2018 restated: €8,970 million; EBIT before special items 2018 restated: €6,281 million). Until closing, earnings will be presented in the income after taxes of BASF Group as a separate item (“Income after taxes from discontinued operations”).

 

Check out this extra section in each digital issue of SBC Magazine for additional news, perspective, and advertiser content. Learn more and access 2016-2017 archives here.