Sun Chemical’s parent company, DIC Corporation, has entered into a definitive agreement to acquire BASF’s global pigments business, known as BASF Colors & Effects (BCE).
The acquisition will broaden DIC’s portfolio as a global manufacturer of pigments, including those for inks, coatings, plastics, cosmetics, electronic displays and specialty applications. With over 30 pigment production facilities worldwide between DIC and BCE, the company’s pigment portfolio will be able to offer broader product categories related to effect pigments, inorganic pigments, organic pigments, specialty dyes and pigment preparations.
This will create a, ‘world-class pigments supplier that offers customers an even wider range of versatile solutions’, according to the company, which noted that customers are set to benefit through the combination complementary know-how and best practices to develop, ‘ground-breaking innovative solutions’.
DIC Corporation president and CEO, Kaoru Ino, said, ‘Our acquisition of BCE brings together complementary resources and expertise of two recognised leaders in innovation, product stewardship, regulatory leadership, application support and manufacturing.
‘We have outlined a clear growth path for DIC with the target to increase our sales to one 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. It will allow us to expand our offering as one of the leading pigment suppliers globally and provide our customers even more versatile solutions.’
In divesting BCE, BASF noted that it has found a new owner that considers pigments a core strategic business.
Dr Markus Kamieth, member of the board of executive directors of BASF SE and responsible for the company’s Industrial Solutions segment, commented, ‘DIC pursues ambitious growth plans and has announced to further develop the business in the coming years. We are convinced that the pigments business will be able to unfold its full potential within DIC.’
BASF BCE managing director Dr Alexander Haunschild added, ‘We see DIC as an owner who is willing to invest, committed to innovations and interested in the longer term success of the business.’
Myron Petruch, executive officer at DIC, and president and CEO of Sun Chemical, a subsidiary of DIC Corporation, said, ‘As a long-standing business partner of BASF, we value the expertise and engagement of BASF’s employees in the pigments business. The move improves our pigment footprint in Europe and underscores our commitment to delivering solutions tailored to meet the needs of our customers. It also allows us to compete in the global marketplace more effectively going forward.’
In the immediate future, business for customers will remain the same as usual. A transition team will be put in place to ensure a smooth transition for customers and employees by the expected closing date in the fourth quarter of 2020.
