BASF and Solenis have recently signed an agreement to join forces by combining BASF's paper wet-end and water chemicals business with Solenis. The combined entity with pro-forma sales of around €2.4 billion and around 5,000 employees in 2017 aims to deliver additional value for paper and water treatment customers.
The goal is to create a customer-focused global solutions provider for the industry. For the paper industry, the product portfolio of the combined enterprise will cover the entire range of functional and process wet-end chemicals, solutions for the water cycle for paper mills, as well as comprehensive service capabilities.
For the water treatment industry, the customers of the joint organization will benefit from Solenis' high-quality service capabilities and BASF's broad water treatment chemicals platform. Pending approval by the relevant authorities, closing is anticipated for the end of 2018 at the earliest. Financial terms of the transaction are not being disclosed.
BASF will hold a 49% share of the combined entity that will operate under the Solenis name and be headquartered in Wilmington, Delaware, USA. BASF will nominate three out of seven shareholder representatives of the joint entity that will continue to be led by current President and Chief Executive Officer John E. Panichella of Solenis. 51% of the shares will be held by funds managed by Clayton, Dubilier & Rice.
"The transaction underlines BASF's active portfolio management and enables us to share in the future success of this promising joint entity," says Dr. Markus Kamieth, member of the Board of Executive Directors of BASF SE and responsible for the Performance Products segment.
BASF and Solenis will continue to operate as strictly independent companies until the completion of the transaction.
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