BASF, Solenis combine paper and water chemicals business
Solenis and BASF have 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.
“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.”
The transaction is expected to close around the end of 2018 following regulatory approvals and other customary conditions. Financial terms were not disclosed.
“Combined with Solenis’ service capabilities, we will create additional value for our customers,”said Anup Kothari, president of BASF’s Performance Chemicals division.“They will benefit from our joint innovation activities, complementary state-of-the-art product portfolios, and dedicated service and application support.”
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.
Solenis and BASF will continue to operate strictly as independent companies until the transaction is complete.