Ludwigshafen, Germany - BASF SE announced 23 June that it is to acquire speciality chemicals company Cognis for an equity purchase price of Euro 700 million ($860 million).
If Cognis' net financial debt and pension obligations are included, BASF said the value of the transaction reaches Euro 3100 million.
The deal needs clearance by the competition authorities, and BASF expects it to close by November 2010.
"With the acquisition of Cognis, we are strengthening our portfolio with cyclically robust and profitable businesses and further expanding our position as the world's leading chemical company," said BASF chairman Dr Juergen Hambrecht.
In polyurethanes, Cognis supplies polyols based on oleochemicals, as well as renewably sourced materials for the coatings and adhesives sectors.
The company, formed in 1999 out of part of the Henkel company, employs about 5500 people, and operates production sites and service centres in 30 countries. In 2009, Cognis had sales of about Euro 2600 million and an EBITDA (earnings before interest, taxes, depreciation and amortisation) of Euro 322 million.
Cognis' parent Cognis Holding Luxembourg Sarl is controlled by Permira Funds, GS Capital Partners and SV Life Sciences.
"With the support of our owners Permira Funds and CS Capital Partners, we have become a leading innovative supplier of specialty chemicals," said Dr Antonio Trius, chief executive officer of Cognis. "In particular, our focus on wellness and sustainability and our expertise in renewable raw-material based products have been our main success factors. We are convinced that there are excellent opportunities through combining the strengths of Cognis and BASF."