September 10, 2019 By P&PC Staff
BASF is selling its global pigments business used in pulp and paper production, printing and packaging to fine chemical company DIC for €1.15 billion.
The transaction is expected to close in the fourth quarter of 2020. BASF, a German chemicals company, generated pigments business sales of approximately €1 billion in 2018.
“We have achieved our goal to find an owner who considers pigments a core strategic business,” says Dr. Markus Kamieth, member of BASF SE’s board of executive directors, responsible for the industrial solutions segment, in a release. “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 a Japanese company listed at the Tokyo Stock Exchange with about 20,000 employees globally. The company, headquartered in Tokyo, was founded in 1908, is active in more than 60 countries and generated sales of approximately 800 billion yen in 2018. DIC is active in packaging and graphics, functional products, and colour and display.
“We have outlined a clear growth path for DIC with the target to increase our sales to 1 trillion yen, i.e. approximately €8 billion, by 2025,” says 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.”
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