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
The US State of New York is introducing two new bills to combat over-packaging, poor recycling rates and litter issues, including an Extended Producer Responsibility (EPR) program requiring companies such as McDonald’s and Amazon to pay for the cost of packaging disposal and recycling.
The new organization’s mission is to redesign the critical steps of the plastics sorting and recycling system for post-consumer lightweight packaging (LWP) to speed up circularity, born from a need to meet the rising market demand for high-quality recyclates for use in high-end plastic applications.
Starbucks and Hubbub have launched a £1 million (US$1.22 million) “Bring It Back Fund” to increase the uptake of reusable packaging in the F&B industry. The funding will go toward innovative ideas that make it easier for customers to use alternatives to single-use packaging by supporting pilot projects that help shift consumption habits.