BASF and Solenis Close Paper and Water Chemicals Merger
8th February 2019
BASF has completed the merger of its wet-end Paper and Water Chemicals business into Wilmington, Delaware-headquartered Solenis, the former Ashland Water Technologies business, following all regulatory approvals. Financial terms of the deal were not disclosed. The combined specialty chemicals company focused on paper and industrial water technologies that is going to operate under the Solenis name will have pro forma sales of $3 billion.
BASF will be the minority partner in the combined company, with the 51% majority owned collectively owned by Solenis management and funds managed by Clayton, Dubilier & Rice (CD&R).
With 5,200 employees worldwide, the new Solenis said it will have increased sales, service and production capabilities providing expanded chemical offerings and cost-effective solutions for customers in pulp, paper, oil and gas, chemical processing, mining, bio-refining, power, municipal and other industrial markets.
BASF is contributing the paper and water assets of its Performance Chemicals unit, including production sites in Bradford and Grimsby, UK; Suffolk, Virginia, USA; Altamira, Mexico; Ankleshwar, India and Kwinana, Australia, along with related assets including intellectual property. Its paper coating chemical business will not be part of the new company.
Prior to the conclusion of the transaction, the US arm of the Ludwigshafen group, BASF Corporation, planned to close two production sites in South Carolina, eliminating around 50 jobs.
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