Sun Chemical’s parent company, DIC Corporation, has entered into a definitive agreement to acquire BASF’s global pigments business, BASF Colors & Effects (BCE). The purchase price on a cash and debt-free basis is €1.15 billion.
The acquisition will broaden DIC’s portfolio as a global manufacturer of pigments, including those for inks, coatings, plastics, cosmetics, electronic displays and specialty applications.
Between them DIC and BCE have over 30 pigment production facilities across the globe and will now be able to offer broader product categories related to effect pigments, inorganic pigments, organic pigments, specialty dyes and pigment preparations.
‘Our acquisition of BCE brings together complementary resources and expertise of two recognised leaders in innovation, product stewardship, regulatory leadership, application support and manufacturing,’ said DIC president and CEO Kaoru Ino.
‘We have outlined a clear growth path for DIC with the target to increase our sales to one 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.’
BASF noted that BCE would have an owner which would consider pigments a core part of its business. ‘DIC pursues ambitious growth plans and has announced to further develop the business in the coming years,’ said board member Markus Kamieth. ‘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.’
BCE managing director Alexander Haunschild added, ‘We see DIC as an owner who is willing to invest, committed to innovations and interested in the longer term success of the business.’
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.
