Posted October 20, 2014
REINACH, Switzerland – Archroma, a specialty chemicals producer for the textile, paper and emulsions sectors and a portfolio company of U.S.-based private investment firm SK Capital Partners, announced it has entered an agreement to acquire the global textile chemicals business of BASF.
The business being acquired delivers products and technologies across the textile chemicals spectrum, with particular strength in printing, finishing and coating chemicals segments. The acquisition ideally complements Archroma’s textile dyes and chemicals portfolio and geographical presence, the company said.
In addition, the acquisition will allow Archroma to reinforce its Textile Specialties team with a global specialist team that has an especially strong presence in Asia and other high-growth markets. Both BASF’s and Archroma’s textile businesses are headquartered in Singapore, close to the highly developing Asian textile markets and customers.
“With this agreement, we are bringing together the century-old history of BASF textile chemicals products, technologies and people with Archroma’s already strong heritage from Hoechst, Sandoz and Clariant,” said Alexander Wessels, CEO of Archroma. “Archroma already acquired 49 percent of textile manufacturer M. Dohmen in May 2014, illustrating our company’s determination to become the preferred supplier in our industries.”
Thomas Winkler, Archroma’s Textile Specialties president, added: “We are looking forward to partnering with the management and employees of the BASF textile chemicals business. I am convinced that together we can build upon our strong technologies and market positions with the same commitment to customer focus, innovation, world-class quality standards, high service levels, cost-efficiency and sustainability.”
The transaction comprises the global textile chemicals business, as well as the legal entity BASF Pakistan (Private) Ltd., Karachi. About 290 positions globally are in the scope of the transaction, of which about 230 are in Asia.
“In a very competitive and highly fragmented market, we have successfully positioned the textile chemicals business as one of the leading global textile suppliers,” said Hans W. Reiners, president of BASF’s Performance Chemicals division. “The current consolidation process of the industry means that a critical mass is necessary to grow the business successfully. We see positive future growth prospects for the business under the umbrella of Archroma, building on the expertise and professionalism of our textile chemicals team.”
The transaction is subject to approval by the relevant antitrust authorities and the closing is expected to take place by the end of the first quarter in 2015. The parties have agreed not to disclose the financial details of the transaction.
BASF to divest textile chemicals business to Archroma
