Equity Firm Buys BASF’s Construction Chemicals Business

Private equity firm Lone Star recently entered into an agreement to buy BASF’s Construction Chemicals business in a €3.17 billion (about $3.5 billion) cash transaction, the German chemicals firm announced in a Dec. 21 press release.

“Our aim was to find a new home for our Construction Chemicals business where it can leverage its full potential,” Saori Dubourg, a member of BASF SE’s Board of Executive Directors, said in a statement. “Under the umbrella of Lone Star, the Construction Chemicals team can focus on a growth plan with an industry-specific approach.”

The business currently employs some 7000 workers across more than 60 countries. In 2018, BASF Construction Chemicals generated sales of about €2.5 billion. 

“BASF’s Construction Chemicals business fits very well with our portfolio, complementing our investments in the construction materials industry, Lone Star President of Europe Donald Quintin said in the release. “We 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.”

The deal is expected to reach completion in the third quarter of 2020 pending approvals from antitrust regulators. 

Lone Star entered into talks with BASF about the Construction Chemical business this November, Reuters reported. 

Last month Arkema-owned firm Bostik revealed plans to purchase Danish construction chemicals manufacturer LIP Bygningsartikler AS (LIP) to expand its position in the Scandinavian market. That transaction is slated to close early this year. 

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