BASF SE announced that it has entered a deal to sell its construction chemicals business to Lone Star Funds, a global private equity firm for 3.17 billion euros ($3.5 billion).
The deal, which has immediate effect upon BASF’s reporting, is expected to close in the third quarter of 2020, according to the statement.
The deal is subject to competition authority approval, BASF said in a joint statement with the PE firm.
“Our aim was to find a new home for our Construction Chemicals business where it can leverage its full potential,” said Saori Dubourg, member of the Board of Executive Directors of BASF SE and responsible for the Construction Chemicals business. “Under the umbrella of Lone Star, the Construction Chemicals team can focus on a growth path with an industry-specific approach.”
“The business complements Lone Star’s portfolio of investments in construction materials,” said Donald Quintin, President of Europe at Lone Star.
BASF’s construction chemicals unit is the world’s largest maker of additives for concrete. It also offers a range of substances including concrete repair fillers, grouts and sealants under a business dubbed Construction Systems, where BASF is the No. 4 player globally. The business unit has more than 7,000 employees, operates in over 60 countries and generated sales of about 2.5 billion euros ($2.77 billion) in 2018, according to the statement.
BASF announced a strategic review of the division last year. Lone Star entered exclusive talks with BASF after beating out a rival consortium that included Cinven and Bain Capital.
Source: BASF SE