BASF Divests from Global Pigments Unit

German chemicals and materials firm BASF announced Thursday that an agreement was signed to sell its global pigments business, BASF Colors & Effects (BCE), to DIC Corporation for €1.15 billion (about $1.27 billion). 

“Our acquisition of BCE brings together complimentary resources and expertise of two recognized leaders in innovation, product stewardship, regulatory leadership, application support and manufacturing,” Kaoru Ino, president and chief executive officer of DIC, said in a company press release. “We have outlined a clear growth path for DIC with the target to increase our sales to 1 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.”

Some 2600 workers are employed by BASF Colors & Effects across its global footprint. The business generated €1 billion in sales last year. 

“The acquisition of BCE is extremely ideal within the DIC pigments business, due to the complimentary regional footprint and product portfolio. It is a strategic partner for DIC who aims for high growth and high added value by expanding functional pigments into niche applications,” said Yoshinari Akiyama, DIC Executive Officer and General Manager of the Color Material Products division, in a statement. 

The transaction is slated to close by the fourth quarter of 2020 following the completion of regulatory approvals. 

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