DIC acquires BASF's global pigments business

BASF and the fine chemicals company DIC have reached an agreement to acquire BASF's global pigment business. The selling price, excluding cash and financial liabilities, is €1.15 billion. The transaction is expected to close in the fourth quarter of 2020. The sale is subject to the approval of the relevant competition authorities.

"We have achieved our goal of finding an owner for whom pigments are a strategic core business," said Dr. Markus Kamieth, Member of the Board of Executive Directors of BASF SE and responsible for the Industrial Solutions segment. "DIC is pursuing ambitious growth plans and has announced that it will continue to develop the business in the coming years. We are convinced that the Pigments business can fully develop its potential at DIC".

DIC is a listed Japanese company in Tokyo with around 20,000 employees worldwide. Headquartered in Tokyo, the company was founded in 1908, is active in over 60 countries and generated sales of around 800 billion Japanese yen in 2018. This corresponds to around €6.8 billion. Under the motto "Color & Comfort", DIC is active in three segments: Packaging & Graphics, Functional Products and Color & Display. Color & Display comprises a portfolio of pigments.

"We have set a clear growth course for DIC with the goal of increasing our sales to 1 trillion yen, or around €8 billion, by 2025. In this context, BASF's pigment portfolio is an important strategic addition to achieve this goal even faster. It will allow us to expand our position as one of the world's leading pigment manufacturers and offer our customers even more diverse solutions," said Kaoru Ino, President and Chief Executive Officer of DIC.

For Dr. Alexander Haunschild, Senior Vice President and Managing Director of BASF Colors & Effects, BASF's Pigments subsidiary, the agreement is an opportunity to continue the growth path we have pursued since 2016: "We see DIC as an owner who is willing to invest in this business, is committed to innovation and is interested in the long-term success of the Pigments business.

Myron Petruch, DIC Executive Officer and Chairman of the Board of Executive Directors of Sun Chemical, the DIC Group company active in the pigments market, adds: "As a long-standing business partner of BASF, we value the expertise and commitment of BASF employees in the pigments business. With the combination of our businesses, DIC/Sun confirms our ambition to be one of the most innovative pigment manufacturers in the world".

BASF's pigment business, which employs about 2,600 people worldwide, achieved sales of about €1 billion in 2018.


About BASF

Chemistry for a sustainable future - that's what BASF stands for. We combine economic success with environmental protection and social responsibility. Around 122,000 employees in the BASF Group work to contribute to the success of our customers in almost all industries and countries around the world. Our portfolio is divided into six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF achieved global sales of about €63 billion in 2018. BASF shares are traded on the Frankfurt Stock Exchange (BAS) and as American Depositary Receipts (BASFY) in the United States.

Source: www.basf.com.