23 June 2010 09:44 [Source: ICIS news]
(adds background in paragraphs 8 and 10)
SINGAPORE (ICIS news)--Chemical major BASF said on Wednesday that it has reached an agreement to acquire specialty chemicals producer Cognis for €3.1bn ($3.8bn).
"Closing of the transaction is expected for November 2010 at the latest," BASF said in a statement.
"With the acquisition of Cognis, we are strengthening our portfolio with cyclically robust and profitable businesses and further expanding our position as the world’s leading chemical company,” said Jurgen Hambrecht, chairman of the board of executive directors of BASF.
Following the necessary approvals, the business would be integrated into BASF’s performance products segment, the company added.
“By purchasing Cognis, we will in particular expand our portfolio with products based on renewable raw materials,” said John Feldmann, member of the board of executive directors of BASF and responsible for the company’s performance products segment.
BASF said the equity purchase price of the deal would be €700m, while the “enterprise value” of the transaction would be €3.1bn, including net financial debt and pension obligations.
The acquisition of Germany-based Cognis would be BASF’s largest deal since it bought specialty chemicals major Ciba for around €3.9bn in April last year.
In April, Cognis swung to a preliminary net profit of €47m for the first quarter of 2010 from a net loss of €33m for the same period last year, as business conditions improved due to the pick-up in worldwide demand.
Cognis is a supplier of specialty chemicals and nutritional ingredients, with a particular focus on the food and healthcare markets and the cosmetics, detergents and cleaners industries.
Cognis, which used to be part of German soap, detergents and adhesives major Henkel, was sold in 2001 to a group of private equity firms advised by Permira and Goldman Sachs.
($1 = €0.81)
Additional reporting by Franco Capaldo
For more on BASF visit ICIS company intelligence
To discuss issues facing the chemical industry visit ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections