May 3, 2018 – An agreement has been reached between Solenis and BASF to combine BASF's paper and water chemicals business with Solenis to create a joint customer-focused global specialty chemical company.
The combined company will operate under the Solenis brand and will provide expanded offerings and cost-effective solutions for customers in two specialty chemical businesses: paper technologies and industrial water technologies.
The transaction is expected to close near the end of 2018 following regulatory approvals and other customary conditions. 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,” Solenis president and CEO John Panichella, said. “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.”
Panichella will lead the combined company headquartered in Wilmington, Del.
“Combined with Solenis’ service capabilities, we will create additional value for our customers,” Anup Kothari, president of BASF’s performance chemicals division, said. “They will benefit from our joint innovation activities, complementary state-of-the-art product portfolios, and dedicated service and application support.”
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. For water-intensive 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, U.K.; Suffolk, Va.; 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.
Debevoise & Plimpton LLP is serving as legal adviser to Solenis and BofA Merrill Lynch, Citi, Credit Suisse and Deutsche Bank are serving as its financial advisers.
BASF Paper and Water Chemicals offers a crange of chemicals for the paper and water industry.
Solenis is a leading global producer of specialty chemicals for water intensive industries, including the pulp, paper, oil and gas, chemical processing, mining, biorefining, power and municipal markets.
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