Private equity firm Lone Star has entered a deal to buy BASF’s construction chemicals business for 3.17 billion euros ($3.5 billion) on a cash and debt-free basis, the German chemicals company said on Saturday as it seeks to focus on more profitable operations.
The deal, which has immediate effect upon BASF’s reporting, is expected to close in the third quarter of 2020, according to the statement.
Reuters reported last month that Lone Star was in negotiations to buy the BASF unit.
The private equity firm vied with a consortium comprising buyout groups Cinven – which owns peer Chryso – and Bain for the world’s largest maker of chemical additives for concrete, sources told Reuters in November.
Lone Star had previously walked away from the bidding but was invited back to the negotiating table.
BASF’s construction chemicals unit is the world’s largest maker of additives for concrete. It also offers a range of substances including concrete repair fillers, grouts and sealants under a business dubbed Construction Systems, where BASF is the No. 4 player globally.
BASF purchased the construction chemicals business from Degussa in 2006 for 2.7 billion euros including debt.
By Kanishka Singh
Neste will provide Avfuel with SAF in volumes able to meet the growing demands of Avfuel’s customers, including fixed base operators (FBOs), airports, flight departments, original equipment manufacturers (OEMs) and commercial operators.
Operation of the plant is a joint enterprise between Borealis, TOMRA and Zimmermann. Borealis is responsible for the plant’s commercial success and contributes its expertise and knowledge in innovation, recycling and compounding.
Johnson Matthey announces that Stephen Oxley will join the company’s board on 1st April 2021 as Chief Financial Officer (CFO).