BASF (Ludwigshafen, Germany) recently entered into an agreement with an affiliate of private equity firm Lone Star Funds (Dallas, Texas) to purchase BASF’s Construction Chemicals business. The purchase price for this business, which was made on a cash- and debt-free basis, totals €3.17 billion ($3.52 billion).  

According to Saori Dubourg, the person responsible for the company’s Construction Chemicals business, the Lone Star purchase will help facilitate the development of BASF’s chemical systems division. “Our aim was to find a new home for our Construction Chemicals business where it can leverage its full potential,” says Dubourg, who is also a member of BASF’s Board of Executive Directors. “Under the umbrella of Lone Star, the Construction Chemicals team can focus on a growth path with an industry-specific approach.”

“BASF’s Construction Chemicals business fits very well with our portfolio, complementing our investments in the construction materials industry,” says Donald Quintin, Lone Star’s president for origination activities in Europe. “We highly value the industry-wide recognized knowledge and competence of BASF’s Construction Chemicals experts, backed by a strong track record in innovative products and a compelling R&D pipeline. We look forward to jointly pursuing a growth-oriented business approach.”

Currently, the Construction Chemicals unit employs more than 7,000 employees and operates production sites and sales offices in more than 60 countries. In 2018 alone, the unit generated €2.5 billion ($2.79 billion) in revenue.

The transaction is slated to be finalized in the third quarter of 2020 after meeting the approval of the relevant competition authorities.

Source: BASF, www.basf.com.