BASF has closed the divestiture of its global pigments business to chemical company DIC, following the fulfillment of clearance conditions. The purchase price on a cash and debt-free basis was €1.15 billion.
According to BASF, DIC is a Japanese company listed at the Tokyo Stock Exchange and has around 20,000 employees globally. The company, headquartered in Tokyo, was founded in 1908, is active in more than 60 countries, and generated sales of around 700 billion yen in 2020.
When the acquisition agreement was announced in 2019, Dr Markus Kamieth, member of the Board of Executive Directors of BASF SE, said DIC was pursuing “ambitious growth plans” and had announced that it would further develop the business in the coming years.
Kaoru Ino, President and Chief Executive Officer of DIC, said the company wants to increase sales to 1 trillion yen ($12.29 billion) by 2025. “In this context, BASF’s pigments portfolio is an important strategic addition in meeting our goals more expeditiously. It will allow us to expand our position as one of the leading pigment suppliers globally and offer our customers even more versatile solutions,” he said.
Dr Alexander Haunschild, Senior Vice President and Managing Director at BASF’s pigment-focused subsidiary BASF Colours & Effects, said the agreement is a chance to continue the growth path started in 2016. “We see DIC as an owner who is willing to invest, committed to innovations, and interested in the longer-term success of the business,” Haunschild said.
Myron Petruch, DIC Executive Officer and Chief Executive Officer of DIC’s group company in the pigments market, Sun Chemical, said that as a long-standing business partner of BASF, the group values the expertise and engagement of BASF’s employees in the pigments business. “By combining our businesses, DIC/Sun confirms the ambition to be one of the most innovative pigment suppliers globally,” Petruch said.