Solenis and BASF to combine businesses
Solenis and BASF signed an agreement to combine BASF’s paper and water chemicals business with Solenis to create a global specialty chemical company. The combined company will operate under the Solenis brand and will provide expanded offerings in two specialty chemical businesses: paper technologies and industrial water technologies. The transaction is expected to close around the end of 2018 following regulatory approvals and other customary conditions.
For the pulp and paper industry, the product portfolio of the combined enterprise will cover the entire range of water, process and functional chemistries as well as comprehensive service capabilities. According to Solenis, for waterintensive markets, customers will benefit from Solenis’ service capabilities and BASF’s broad water treatment chemicals platform.
The transaction comprises BASF’s global paper and water chemicals business, including nearly 1,300 employees globally. Upon the close of the transaction and in accordance with local laws, employees will transfer to Solenis. The transaction includes the paper and water business assets of BASF’s Performance Chemicals unit, including production sites in Bradford and Grimsby, UK; Suffolk, Virginia, United States; Altamira, Mexico; Ankleshwar, India; and Kwinana, Australia. BASF’s paper and water chemicals production plants in Ludwigshafen, Germany, and Nanjing, China, will not transfer and will deliver raw materials pursuant to supply agreements. BASF’s paper coating chemical business is not part of the contemplated transaction. Solenis and BASF will continue to operate strictly as independent companies until the transaction is complete.