DIC Buys BASF's Global Pigments Business

WEDNESDAY, SEPTEMBER 4, 2019


Chemicals companies BASF and DIC announced last week that they have reached an agreement on the acquisition of BASF’s global pigments business.

DIC will purchase the business for 1.15 billion euros (roughly $1.26 billion). The transaction is expected to close in the fourth quarter of 2020 and the divestiture is still subject to approval by the relevant authorities, the companies noted.

“We have achieved our goal to find an owner who considers pigments a core strategic business,” said Markus Kamieth, member of the Board of Executive Directors of BASF SE, responsible for the Industrial Solutions segment.

“DIC pursues ambitious growth plans and has announced to further develop the business in the coming years. We are convinced that the pigments business will be able to unfold its full potential within DIC.”

DIC is headquartered in Tokyo and employs about 20,000 people globally. It was founded in 1908 and is active in more than 60 countries. It generated about 800 billion yen ($7.56 billion) in 2018. DIC has three segments: Packaging & Graphics, Functional Products and Color & Display, which includes a portfolio of pigments.

“We have outlined a clear growth path for DIC with the target to increase our sales to 1 trillion yen by 2025,” said Kaoru Ino, President and Chief Executive Officer of DIC.

“In this context, BASF’s pigments portfolio is an important strategic addition in meeting our goals more expeditiously. It will allow us to expand our position as one of the leading pigment suppliers globally and offer our customers even more versatile solutions.”

BASF’s pigments business has about 2,600 employees globally and generated sales of approximately 1 billion euros in 2018.

   

Tagged categories: Acquisitions; Asia Pacific; BASF; Business matters; Business operations; EMEA (Europe, Middle East and Africa); Good Technical Practice; Latin America; Mergers; North America; Pigments; Z-Continents

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