BASF has completed its $4.1 billion acquisition of German specialty chemicals company Cognis and says the deal will mean more, and greener, high-performance products for customers worldwide.
Cognis should be fully integrated into BASF by the end of 2011, the company said.
The deal will offer customers of the Performance Chemicals and Dispersions & Pigments divisions an expanded portfolio, BASF says. The acquisition will particularly expand BASF's portfolio with products based on renewable raw materials.
"Cognis' and BASF's know-how and range of products complement each other very well. The combination will broaden our portfolio of specialty chemicals and boost innovation for our customers," said Dr. Jürgen Hambrecht, Chairman of BASF's Board of Executive Directors.
"Cognis will make an important contribution to the growth strategy of our Performance Products segment.”
BASF acquired Cognis from GS Capital, the private equity arm of Goldman Sachs, Permira Funds and SV Life Sciences. The acquisition received approval from the European Commission on Nov. 30, subject to BASF divesting several of Cognis' s businesses.
"Our highest priority is to ensure a smooth and seamless integration process while maintaining the highest standards of customer service and product quality," said Dr. John Feldmann, member of the Board of Executive Directors of BASF and responsible for the Performance Products segment. Most of Cognis' businesses will be integrated into the divisions of this segment.
"Cognis will make an important contribution to the growth strategy of our Performance Products segment. We aim to grow two percentage points above the relevant markets and achieve an EBITDA margin of minimum 20% as of 2013. The businesses acquired from Cognis will help us to achieve these goals," said Feldmann.
BASF is the world’s leading chemical company, with sales of more than €50 billion (about $66 billion US) and about 105,000 employees at the end of 2009.