#Textile chemistry

2015-07-01

Archroma completes acquisition of BASF textile chemicals business

From left to right: Aaron Davenport, Managing Director of SK Capital Partners Christian Fischer, President of BASF’s Performance Chemicals division. (c) 2015 (Photo: Archroma)

Archroma, a global leader in specialty chemicals for the textile, paper and emulsions sectors, announced today that it has closed the acquisition of BASF’s global* textile chemicals business. The acquisition further solidifies Archroma’s position as a clear industry leader in supplying chemicals and dyes to the global textile industry. Archroma is a portfolio company of US-based private investment firm SK Capital Partners.

This is the second strategic transaction by Archroma following its corporate carve-out from Clariant in 2013, after previously acquiring a stake in the textile dyes and chemicals manufacturer M. Dohmen in 2014.

The BASF business delivers products and technologies across the entire textile chemicals spectrum, with particular strengths in printing, finishing and coating chemicals. The acquisition strategically complements Archroma’s product portfolio and geographical presence that will now include BASF’s strong market positions in Asia and several other high-growth markets. The combined textile chemicals businesses will continue their history of maintaining a strong commitment to innovation and sustainability.

“The textile industry is undergoing transformational change resulting from macro supply and demand shifts as well as a growing customer demand for sustainably-oriented solutions” said Alexander Wessels, CEO of Archroma. He added: “The operational and intellectual synergies between BASF and Archroma will allow us to offer our customers the full breadth and depth of innovation, quality, reliability, expertise and market coverage they need to prosper in these market conditions.”

About 225 employees globally* are in the scope of the transaction, of which approximately 175 are located in Asia. The combined textiles businesses will remain headquartered in Singapore, close to customers in Asia’s fast-growing textile markets.

*The closing of the transaction for the legal entity BASF Pakistan (Private) Ltd., Karachi in Pakistan is expected to take place in August 2015.

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