German chemical company BASF has agreed to sell its construction chemicals business to an affiliate of private equity firm Lone Star Funds in an all-cash deal worth €3.17 billion.
The construction chemicals business has production sites and sales offices in 60 plus countries and in 2018 had sales revenue of around €2.5 billion.
The BASF unit, which employs more than 7,000 employees, supplies products and solutions for the construction industry. Some of these are concrete admixtures, cement additives, underground construction solutions, concrete repair and protection systems, waterproofing systems, flooring systems, and performance grouts.
Saori Dubourg – member of the Executive Directors Board of BASF and responsible for the Construction Chemicals business said: “Our aim was to find a new home for our Construction Chemicals business where it can leverage its full potential.
“Under the umbrella of Lone Star, the Construction Chemicals team can focus on a growth path with an industry-specific approach.”
The deal, which is subject to the approval from the concerned competition authorities, is likely to be closed in Q3 2020.
Donald Quintin – President of Europe at Lone Star said: “BASF’s Construction Chemicals business fits very well with our portfolio, complementing our investments in the construction materials industry.
“We highly value the industry-wide recognized knowledge and competence of BASF’s Construction Chemicals experts, backed by a strong track record in innovative products and a compelling R&D pipeline. We look forward to jointly pursuing a growth-oriented business approach.”