DIC Corporation, has entered
into a definitive agreement to acquire BASF’s global pigments business, known
as BASF Colors & Effects (BCE).
The acquisition will broaden
DIC’s portfolio as a global manufacturer of pigments, including those for
electronic displays, cosmetics, coatings, plastics, inks and specialty
applications, by creating a world-class pigments supplier that offers customers
an even wider range of versatile solutions.
“Our acquisition of
BCE brings together complementary resources and expertise of two recognized
leaders in innovation, product stewardship, regulatory leadership, application
support and manufacturing,” said Kaoru Ino, President and Chief Executive
Officer of DIC. “We have outlined a clear
growth path for DIC with the target to increase our sales to 1 trillion yen
(approximately €8 billion) by 2025. In this context, BASF’s pigments portfolio
is an important strategic addition in meeting our goals more expeditiously. It
will allow us to expand our offering as one of the leading pigment suppliers
globally and provide our customers even more versatile solutions.”
“We have achieved our goal to
find an owner who considers pigments a core strategic business,” said Dr.
Markus Kamieth, Member of the Board of Executive Directors of BASF SE
responsible for the Industrial Solutions segment. “DIC
pursues ambitious growth plans and has announced to further develop the
business in the coming years. We are convinced that the pigments business will
be able to unfold its full potential within DIC.”
Customers will benefit as the
acquisition offers a unique opportunity to combine complementary know-how and
best practices to develop ground-breaking innovative solutions for the marketplace.
As a company that strives for Color & Comfort, DIC believes that it can
contribute to its customers by providing colors to society and life. With over
30 pigment production facilities worldwide between DIC and BCE, the company’s
pigment portfolio will be able to offer broader product categories related to
effect pigments, inorganic pigments, organic pigments, specialty dyes, and
Yoshinari Akiyama, DIC Executive Officer and General
Manager of the Color Material Products Div. states,
acquisition of BCE is extremely ideal within
the DIC pigments business, due to the
complementary regional footprint and product portfolio.
It is a strategic
partner for DIC who aims for high growth and
high added value by expanding functional pigments into niche
applications. By combining the technological capabilities of both
companies, we will continue to create new value and provide it to the market as
a leading company in the pigment business.”
For Dr. Alexander Haunschild, Senior Vice
President and Managing Director at BASF’s pigment-focused subsidiary BASF
Colors & Effects, the agreement is a chance to continue the growth path
started in 2016: “We see DIC as an owner who is
willing to invest, committed to innovations and interested in the longer term
success of the business.”
“As a long-standing business
partner of BASF, we value the expertise and engagement of BASF’s employees in
the pigments business,” said Myron Petruch, DIC Executive Officer and President
and CEO of Sun Chemical, a subsidiary of DIC Corporation. “The move improves
our pigment footprint in Europe and underscores our commitment to delivering
solutions tailored to meet the needs of our customers. It also allows us to
compete in the global marketplace more effectively going forward”
In the immediate future,
business for customers will remain the same as usual. A transition team will be
put in place to ensure a smooth transition for customers and employees by the
expected closing date in the fourth quarter of 2020.
The acquisition is subject to
the receipt of regulatory approvals.
& Case LLP served as legal counsel and Morgan Stanley served as financial
advisor to DIC.