Solenis and BASF to Combine Paper and Water Chemicals Businesses
The combined company will operate under the Solenis name as a global specialty chemical company focused on paper technologies and industrial water technologies.
May 3, 2018 - Effective May 2, 2018, Solenis and BASF signed an agreement to combine BASF's paper and water chemicals business with Solenis to jointly create a customer-focused global specialty chemical company. The combined company intends to operate under the Solenis brand and will be positioned to provide expanded offerings and cost-effective solutions for customers in two specialty chemical businesses: paper technologies and industrial water technologies.
Financial terms were not disclosed.
“Together, we have a unique opportunity to create a customer-focused global specialty chemical company with an enhanced focus and expanded offerings,” said Solenis President and CEO John Panichella, who will lead the combined company headquartered in Wilmington, Delaware, USA. “I am pleased that our cultures are closely aligned and that our companies share a strong common desire to create value for our customers. Together, as one team of experts, we will continue to strive toward excellence in innovation, sustainability and safety.”
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, USA; 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.
The transaction is expected to close around the end of 2018 following regulatory approvals and other customary conditions.
Solenis and BASF will continue to operate strictly as independent companies until the transaction is complete.
Solenis is a leading global producer of specialty chemicals for water intensive industries, including the pulp and paper industry. To learn more, please visit: www.solenis.com.