BASF to sell global textile chemicals business to Archroma
BASF has agreed on the sale of its global textile chemicals business to Archroma, a supplier of specialty chemicals to the textile, paper and emulsions industries.
Archroma is a portfolio company of SK Capital Partners, a private investment firm with focus on the specialty materials, chemicals and healthcare sectors. It is planned to integrate the business into the Archroma Textile Chemicals Specialties business. Currently, the textile chemicals business is part of BASF’s Performance Chemicals division.
The transaction is subject to approval by the relevant antitrust authorities and the closing is expected to take place in the first quarter of 2015. The parties have agreed not to disclose financial details.
The transaction comprises the global textile chemicals business, as well as the legal entity BASF Pakistan Karachi. About 290 positions globally are in the scope of the transaction, and subsequently 230 in Asia. This step is in line with BASF’s strategy of actively managing its portfolio and it will further sharpen the focus of the Performance Products segment on growth driven customer industries.
Hans Reiners, President of BASF’s Performance Chemicals division, said: “In a very competitive and highly fragmented market, we have successfully positioned the textile chemicals business as one of the leading global textile suppliers.
“The current consolidation process of the industry means that a critical mass is necessary to grow the business successfully. We see positive future growth prospects for the business under the umbrella of Archroma, building on the expertise and professionalism of our textile chemicals team.”
The textile chemicals business of BASF offers solutions to the full textile processing value chain, which includes a portfolio for pre-treatment, printing, finishing and coating. The business has a global presence with a strong focus on Asian growth markets, and is headquartered in Singapore.
BASF, which is 150 years old, has a portfolio which ranges from chemicals, plastics, performance products and crop protection products to oil and gas. As the world’s leading chemical company, it combines economic success with environmental protection and social responsibility. BASF had sales of €74 billion in 2013 and over 112,000 employees as of the end of the year. Further information on BASF is available at www.basf.com