BASF India Limited has entered into an agreement to divest its stilbene-based Optical Brightening Agents (OBA) business for paper and powder detergent applications to Archroma India Private Limited for about Rs 33.50 crore ($4.9 million).
The transaction includes stilbene-based OBA product portfolio and the manufacturing unit at Ankleshwar, India.
The stilbene-based OBA business is part of BASF’s Performance Chemicals division and Care Chemicals division. The transaction is expected to be completed in the fourth quarter of 2019.
“In line with BASF’s strategy of actively managing its portfolio, this transaction allows us to better fulfill our business potential,” said Narayan Krishnamohan, Managing Director, BASF India Limited and Head, South Asia. “Archroma is a global leader in color and specialty chemicals. Ensuring a smooth transition of our customers, suppliers and employees to Archroma will be a priority.”
“We are extremely pleased with this opportunity to further consolidate our position as a global leader in the chemical industry by expanding both our supply capacity and application markets,” said Marcos Furrer, President of Packaging & Paper Specialties, Archroma. “This acquisition will not only allow Archroma to strengthen our OBA supply to customers in the packaging & paper industry, in particular in India and Asia, it will also help us develop our portfolio offering to customers in the detergents market with high performance powder OBAs.”
Archroma is a portfolio company of SK Capital Partners, a private investment firm with focus on the specialty materials, chemicals and healthcare sectors.
Source: BASF
