DIC Corp. recently announced that it has entered into a definitive agreement to acquire BASF’s global pigments business, known as BASF Colors & Effects (BCE). DIC reports that the acquisition will broaden its portfolio as a global manufacturer of pigments, including those for electronic displays, cosmetics, coatings, plastics, inks, and specialty applications.
“Our acquisition of BCE brings together complementary resources and expertise of two recognized leaders in innovation, product stewardship, regulatory leadership, application support and manufacturing,” said Kaoru Ino, president and CEO of DIC. “We have outlined a clear growth path for DIC with the target to increase our sales to 1 trillion yen (approximately €8 billion [~ $9.4 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.”
According to Markus Kamieth, Ph.D., member of the board of executive directors of BASF SE responsible for the Industrial Solutions segment, “We have achieved our goal to find an owner who considers pigments a core strategic business. 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.”
Combined, DIC and BCE will reportedly operate over 30 pigment production facilities worldwide. According to DIC, the pigment portfolio will be able to offer broader product categories related to effect pigments, inorganic pigments, organic pigments, specialty dyes, and pigment preparations.
“As a long-standing business partner of BASF, we value the expertise and engagement of BASF’s employees in the pigments business,” said Myron Petruch, DIC executive officer and president and CEO of Sun Chemical, a subsidiary of DIC. “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, DIC reports that 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. The acquisition is subject to the receipt of regulatory approvals.