May 3, 2018
FOR IMMEDIATE RELEASE
The combined company will operate under the Solenis name as a global specialty chemical company focused on paper technologies and industrial water technologies.
WILMINGTON, Del. (USA) — Effective May 2, 2018, Solenis and BASF signed an agreement to combine BASF's paper and water chemicals business with Solenis to jointly create a customer-focused global specialty chemical company. The combined company intends to operate under the Solenis brand and will be positioned to provide expanded offerings and cost-effective solutions for customers in two specialty chemical businesses: paper technologies and industrial water technologies.
The transaction is expected to close around the end of 2018 following regulatory approvals and other customary conditions. Financial terms were not disclosed.
"Together, we have a unique opportunity to create a customer-focused global specialty chemical company with an enhanced focus and expanded offerings," said Solenis President and CEO John Panichella, who will lead the combined company headquartered in Wilmington, Delaware, USA. "I am pleased that our cultures are closely aligned and that our companies share a strong common desire to create value for our customers. Together, as one team of experts, we will continue to strive toward excellence in innovation, sustainability and safety."
"Combined with Solenis' service capabilities, we will create additional value for our customers. They will benefit from our joint innovation activities, complementary state-of-the-art product portfolios, and dedicated service and application support," said Anup Kothari, president of BASF's Performance Chemicals division.
Customers to benefit from a complementary range of products and services
For the pulp and paper industry, the product portfolio of the combined enterprise will cover the entire range of water, process and functional chemistries as well as comprehensive service capabilities. For water-intensive markets, customers will benefit from Solenis' high-quality service capabilities and BASF's broad water treatment chemicals platform.
The transaction comprises BASF's global paper and water chemicals business, including nearly 1,300 employees globally. Upon the close of the transaction and in accordance with local laws, employees will transfer to Solenis.
The transaction includes the paper and water business assets of BASF's Performance Chemicals unit, including production sites in Bradford and Grimsby, UK; Suffolk, Virginia, USA; Altamira, Mexico; Ankleshwar, India; and Kwinana, Australia. BASF's paper and water chemicals production plants in Ludwigshafen, Germany, and Nanjing, China, will not transfer and will deliver raw materials pursuant to supply agreements. BASF's paper coating chemical business is not part of the contemplated transaction.
Solenis and BASF will continue to operate strictly as independent companies until the transaction is complete.
Debevoise & Plimpton LLP is serving as legal advisor to Solenis and BofA Merrill Lynch, Citi, Credit Suisse and Deutsche Bank are serving as its financial advisors.
At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. The more than 115,000 employees in the BASF Group work on contributing to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio is organized into four segments: Chemicals, Performance Products, Functional Materials & Solutions and Agricultural Solutions. BASF generated sales of more than 60 billion in 2017. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (BAS). Further information available at www.basf.com.
Solenis is a leading global producer of specialty chemicals, focused on delivering sustainable solutions for water-intensive industries, including the pulp, packaging paper and board, tissue and towel, oil and gas, petroleum refining, chemical processing, mining, biorefining, power and municipal markets. The company’s product portfolio includes a broad array of water treatment chemistries, process aids and functional additives, as well as state-of-the-art monitoring and control systems. These technologies are used by customers to improve operational efficiencies, enhance product quality, protect plant assets and minimize environmental impact. Headquartered in Wilmington, Delaware, the company has 41 manufacturing facilities strategically located around the globe and employs a team of approximately 5,000 professionals in 120 countries across five continents. Solenis is a 2021 US Best Managed Company.
For additional information about Solenis, please visit www.solenis.com or follow us on social media.
FOR FURTHER INFORMATION
Senior Director, Corporate Communications