Merck Sells Pigments Business to GNMI

German pharmaceuticals and chemicals manufacturer Merck transferred its Surface Solutions business to Global New Material International (GNMI), one of the largest manufacturers of pearlescent pigments.

Photo
Kai Beckmann, Member of the Executive Board of Merck and CEO Electronics, Belén Garijo, Chairwoman of the Executive Board and CEO of Merck and Ertian Su, Chairman & Chief Executive Officer of GNMI
© Tizian Arnholdt

Merck has completed the sale of its global Surface Solutions business to Global New Material International Holdings following the approval of all relevant regulatory authorities and the fulfillment of other customary closing conditions. The sale price amounts to EUR 665 million. Merck will use the net proceeds from the sale to strengthen its strategic core businesses.

"With the completion of this transaction, we are focusing our portfolio even more clearly on technology-driven businesses," said Belén Garijo, Chairwoman of the Executive Board and CEO of Merck. "Alongside acquisitions such as our recent purchases of SpringWorks Therapeutics, HUB Organoids, Unity-SC and Mirus Bio, the divestment of non-strategic businesses remains a key part of our M&A strategy, which is focused on long-term growth through innovation."

"Following the sale of Surface Solutions, we are positioning our Electronics division even more strongly as a provider of semiconductor solutions. At the same time, GNMI offers new prospects for the Surface Solutions business. This means long-term future prospects for employees and customers will benefit from a broader product portfolio," added Kai Beckmann, member of the Executive Board of Merck and CEO Electronics. "We would like to thank our colleagues for their dedicated work and valuable contributions to Merck in the past and wish them all the best for the future."

"We are delighted to welcome the new employees to our company. Our activities are highly complementary in terms of products, expertise and regional presence. Together, we are extremely well positioned to drive growth in a very dynamic market segment," said Ertian Su, Chairman & Chief Executive Officer of GNMI.

The transaction includes Merck's global Surface Solutions business with sales of more than EUR 400 million in 2024, which will be continued by GNMI under the new Susonity brand. Around 1,100 employees, including more than 600 in Germany, have transferred to GNMI. As part of the agreement with Merck, GNMI has guaranteed both a location guarantee for Gernsheim and an employment guarantee for the employees in Germany until 2032. In addition to Gernsheim, Savannah in the USA and Onahama in Japan will remain important production sites for Susonity. Merck and GNMI have also entered into a number of supply and service agreements to ensure a smooth transition of the business.

The land at the Gernsheim site will remain the property of Merck. The space used by Surface Solutions will be leased to GNMI under a long-term contract. The Fluxum GreenTech Park in Gernsheim is not affected by the sale.

Company

Merck KGaA

Frankfurter Str. 250
64293 Darmstadt
Germany

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