BASF sells Construction Chemicals unit to U.S. private equity firm Lone Star for $4.6B
The chemical giant had been shopping for a buyer for the business that employs 7,000 people worldwide for more than a year
Chemical industry giant BASF Group is getting out the construction business.
The Germany-based company said Dec. 21 it has agreed to sell its Construction Chemicals unit to U.S. equity firm Lone Star for 3.17 billion euro (approximately CAD$4.6 billion).
BASF had been shopping for a buyer for the business for more than a year, announcing in October 2018 it was “evaluating strategic options” for the unit that employs about 7,000 people in more than 60 countries.
“Our aim was to find a new home for our Construction Chemicals business where it can leverage its full potential,” said Saori Dubourg, the member of BASF’s board responsible for the unit, in a release. “Under the umbrella of Lone Star, the Construction Chemicals team can focus on a growth path with an industry-specific approach.”
Dallas-based Lone Star said the Construction Chemicals unit, which produces a wide range of additives and other chemicals used in the building industry, fits well into its existing portfolio. Lone Star already owns a number of companies in the construction materials industry.
The all-cash deal still needs to clear the customary regulatory hurdles, but is expected to close in the third quarter of 2020.