MOSCOW (MRC) -- BASF and Clayton, Dubilier & Rice have signed an agreement to sell Solenis to Platinum Equity, a California-based private equity company founded in 1995, said the company.
The transaction implies an enterprise value for Solenis of USD5.25 billion, which includes net debt of around USD2.5 billion, subject to adjustments at closing. Since February 1, 2019, BASF has held 49% of the shares in Solenis and accounted for its share in the company using the equity method; 51% of the shares have been held by funds managed by Clayton, Dubilier & Rice and the Solenis management. Pending approval by the relevant authorities, closing of the transaction is expected before the end of 2021.
With over 5,200 employees, Solenis is serving customers in water-intensive industries by helping them solve complex water treatment and process improvement challenges. In 2019, BASF transferred its paper wet-end and water chemicals business to Solenis, creating a leading global solutions provider for the paper and water treatment industries. In the fiscal year ending September 30, 2020, the company headquartered in Wilmington, Delaware, USA, generated sales of USD2.8 billion.
BASF and Clayton, Dubilier & Rice will fully exit their investment in Solenis as part of the transaction announced today. The transaction does not affect any of the existing mid- to long-term supply agreements and commercial relationships between BASF and Solenis. BASF will continue to supply products to or source products from Solenis under these agreements.
As per MRC, BASF and the Fabbri group of companies developed biodegradable films for food packaging.
Based on ecovio, a certified biodegradable material from BASF, the Fabbri Group produces Nature Fresh, a highly transparent stretch film. This product is the first certified biodegradable film for foodstuffs, combining optimal breathability, long shelf life, high transparency and excellent mechanical properties for automatic packaging.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
BASF is the largest diversified chemical company in the world and a leading global supplier of high quality polyamide and polyamide intermediates for films and monofilaments.
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