BASF Wraps Up Sale of Construction Chemicals Business

German chemicals and materials firm BASF has closed the sale of its Construction Chemicals business to an affiliate of private equity firm Lone Star, a company release announced Wednesday. The transaction was priced at €3.17 billion, or about $3.7 billion.

“Lone Star has been a professional partner in this transaction and is committed to the future success of the business,” Saori Dubourg, member of BASF SE’s Board of Executive Directors, said in a statement. “We highly appreciate the tremendous efforts to realize the carve out and close the deal in such a fast and decisive manner. We wish the Construction Chemicals team much success for the future.”

The deal includes the business’ assets and liabilities. BASF said the related disposal gain will be reflected in its fourth quarter 2020 financial reporting.

Lone Star’s affiliate signed a purchase agreement for the Construction Chemicals business in December 2019. The business currently operates production facilities in 60 countries and employs about 7,500 workers. In 2019, the business generated sales of around €2.6 billion.