BASF and Clayton, Dubilier & Rice have signed an agreement to sell Solenis to Platinum Equity, a California-based private equity company founded in 1995. The transaction implies an enterprise value for Solenis of $5.25 billion, which includes net debt of around $2.5 billion, subject to adjustments at closing. Since February 1, 2019, BASF has held 49% of the shares in Solenis and accounted for its share in the company using the equity method; 51% of the shares have been held by funds managed by Clayton, Dubilier & Rice and the Solenis management. Pending approval by the relevant authorities, closing of the transaction is expected before the end of 2021.
With over 5,200 employees, Solenis is serving customers in water-intensive industries by helping them solve complex water treatment and process improvement challenges. In 2019, BASF transferred its paper wet-end and water chemicals business to Solenis, creating a global solutions provider for the paper and water treatment industries. In the fiscal year ending September 30, 2020, the company headquartered in Wilmington, Delaware, USA, generated sales of $2.8 billion.
BASF and Clayton, Dubilier & Rice will fully exit their investment in Solenis as part of the transaction. The transaction does not affect any of the existing mid- to long-term supply agreements and commercial relationships between BASF and Solenis. BASF will continue to supply products to or source products from Solenis under these agreements.
France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).
The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.
At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?