The world’s largest maker of concrete admixtures is seen as the fourth ranked player in the construction chemicals market. It also produces a range of other chemicals used in building. The portfolio acquired from Degussa (now Evonik) for €2.7 billion including debt in 2006 had sales of about €2.6 billion in 2019 with around 7,500 employees.

A purchase agreement with Lone Star was signed on Dec. 21, 2019, and BASF’s CEO, Martin Brudermüller, said the group hoped to close the deal by the end of this year. The European Commission gave its green light in July.

The German group previously had agreed to sell the business to LafargeHolcim, the world’s largest cement manufacturer; the transaction fell through, however.  Lone Star had previously walked away from the bidding but was later invited back to the negotiating table, sources told the Reuters news agency at the time.

BASF said the divestment of the assets and liabilities and the related disposal gain will be reflected in its financial reporting for the fourth quarter. Related payments received up to Sept. 30 will be included in cash flows from investing activities in the Q3 2020 Statement of Cash Flows.

Saori Dubourg, member of BASF managing board, said the group was “pleased to realize the carve-out and close the deal in such a fast and decisive manner.”

Author: Dede Williams, Freelance Journalist