Following the approval of all relevant authorities, BASF and Solenis have completed the previously announced merger of BASF’s wet-end Paper and Water Chemicals business with Solenis. With pro forma sales of approximately U.S. $3 billion, the combined company will operate under the Solenis brand and is positioned to provide expanded chemical offerings and cost-effective solutions for customers in pulp, paper, oil and gas, chemical processing, mining, biorefining, power, municipal and other industrial markets.
BASF will own 49 percent of the combined company and 51 percent is collectively owned by Solenis management and funds managed by Clayton, Dubilier & Rice (CD&R). The new Solenis has approximately 5,200 employees, with increased sales, service and production capabilities across the globe.
The merger includes the Paper and Water assets of BASF’s Performance Chemicals unit, including production sites in Bradford and Grimsby, UK; Suffolk, Virginia, USA; Altamira, Mexico; Ankleshwar, India; and Kwinana, Australia and related assets including intellectual property. BASF’s paper coating chemical business is not part of the transaction.
“Combining our strong heritages creates the leading customer-focused, global solutions provider for the paper and water industries. Customers from these industries will benefit from our joint strengths, resulting in an unparalleled and complementary range of products and services, state-of-the-art innovations and know-how,” said John Panichella, president and CEO, Solenis.
“Joining forces with Solenis is the right step for BASF’s Paper and Water Chemicals business to maintain sustainable growth. Together, we will provide the broadest scope of products and services to meet the specialty chemical needs of the global paper and water industry,” added Anup Kothari, president of BASF’s Performance Chemicals division.
“Bringing together these two highly successful and complementary businesses creates an even stronger global enterprise with enhanced prospects for long-term growth and value creation,” said David Scheible, Chairman of Solenis and Operating Advisor to CD&R.