The transaction, which is expected to be completed in the fourth quarter of 2019, includes stilbene-based OBA product portfolio and the Ankleshwar manufacturing unit.
July 9, 2019
BASF India, a subsidiary of global chemicals major BASF, has entered into an agreement to divest its stilbene-based Optical Brightening Agents (OBA) business for paper and powder detergent applications to Archroma India for about INR 33.50 crore.
The acquisition amount includes INR 13.84 crore, which will be kept in an escrow account for 12 months from the date of the deal. It will be released on attainment of certain conditions as mutually agreed between the parties, the company said in a statement.
Archroma is a member of the SK Capital Partners group. In July 2015 the company acquired the global textile chemicals business of BASF, and, between 2014 and 2018, M. Dohmen, an international group specializing in the production of textile dyes and chemicals for the automotive, carpet and apparel sectors.
“We are extremely pleased with this opportunity to further consolidate our position as a global leader in the chemical industry by expanding both our supply capacity and application markets,” said Marcos Furrer, president of packaging and paper specialties, Archroma. “This acquisition will not only allow Archroma to strengthen our OBA supply to customers in the packaging and paper industry, in particular in India and Asia, it will also help us develop our portfolio offering to customers in the detergents market with high performance powder OBAs,” he added.
“In line with BASF’s strategy of actively managing its portfolio, this transaction allows us to better fulfill our business potential”, said Narayan Krishnamohan, Managing Director, BASF India Limited and Head, South Asia. “Archroma is a global leader in color and specialty chemicals. Ensuring a smooth transition of our customers, suppliers and employees to Archroma will be a priority.”