Lone Star Funds to acquire BASF’s Construction Chemicals business

BASF and an affiliate of Lone Star, a global private equity firm, have signed a purchase agreement for the acquisition of BASF’s Construction Chemicals business. The purchase price on a cash and debt-free basis is €3.17 billion.

The transaction is expected to close in the third quarter of 2020, subject to the approval of the relevant competition authorities.

“Our aim was to find a new home for our Construction Chemicals business where it can leverage its full potential,” said Saori Dubourg, member of the Board of Executive Directors of BASF SE and responsible for the Construction Chemicals business.

“Under the umbrella of Lone Star, the Construction Chemicals team can focus on a growth path with an industry-specific approach.”

According to Donald Quintin, president of Europe at Lone Star, “BASF’s Construction Chemicals business fits very well with our portfolio, complementing our investments in the construction materials industry.

“We highly 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.”

With more than 7,000 employees, BASF’s Construction Chemicals business operates production sites and sales offices in more than 60 countries and generated sales of about €2.5 billion in 2018. The signing of the agreement has immediate effect on the reporting of BASF Group.

Lone Star is a private equity firm that invests globally in real estate, equity, credit and other financial assets. Since the establishment of its first fund in 1995, Lone Star has organized twenty private equity funds with aggregate capital commitments totaling approximately $85 billion.

The approximately 122,000 employees in the BASF Group work on contributing to six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of around €63 billion in 2018.