Coatings World - January 2011

BASF completes Cognis acquisition

BASF has completed its acquisition of Cognis Holding GmbH from Cognis Holding Luxembourg S.à r.l. controlled by Permira Funds, GS Capital Partners and SV Life Sciences. The equity purchase price was €700 million. Including net financial debt and pension obligations, the enterprise value of the transaction is € 3.1 billion.

“Cognis’ and BASF’s know-how and
range of products complement each other
very well,” said Jürgen Hambrecht, chair-
man of BASF’s Board of Executive Direc-
tors. The combination will broaden our
portfolio of specialty chemicals and boost
innovation for our customers.”
According to the company, through the
purchase of Cognis, BASF will achieve a
leading position in personal care ingredi-
ents, strengthen its leading position in
value-added products for home care, es-
tablish a strong position in human nutri-
tion and further strengthen its position in
pharma excipients. BASF will also be able
to offer customers of the Performance
Chemicals and Dispersions & Pigments
divisions an even more attractive portfo-
lio. The acquisition will in particular ex-
pand BASF’s portfolio with products
based on renewable raw materials.

BASF intends to fully integrate Cognis into the BASF Group. Detailed integration plans will be developed by the end of the first quarter of 2011. Completion of the structural integration is targeted for the end of 2011.

Evonik plans capacity expansion for isophorone products Evonik Industries has announced plans to construct a new production plant for isophorone and isophorone diamine. The company reports that a suitable site is currently being sought, and economic and strategic market factors play an important role in this decision. Production is scheduled to start in 2013. The board of management of Evonik Degussa GmbH has now approved the plant project plan.

“Isophorone chemistry is a core business
for Evonik,” said Klaus Engel, chairman of
the executive board of Evonik Industries.
“The market for isophorone and its deri
atives is growing steadily and proved to be
robust even during the economic crisis.
That’s why we want to sustainably
strengthen our market and technological
leadership by capacity expansion.”
Evonik currently has production sites
in Herne and Marl (Germany), Antwerp
(Belgium) and Mobile (Alabama, U.S.).

Huber enter into agreement with Almatis Huber Engineered Materials (HEM), a division of J.M. Huber Corporation, and Almatis, Inc. have reached an agreement under which Almatis will toll produce for HEM certain specialty hydrate flame retardant products previously produced and marketed by Almatis. HEM will immediately be the sales and marketing contact for the products and assumes responsibility for technical support. The specific products to be produced include Hydral 710, Hydral PGA and SpaceRite grades.

Momentive to sell ink and adhesive resins business Momentive Specialty Chemicals Inc. has signed a definitive agreement to sell its global Ink & Adhesive Resins (IAR) business to Harima Chemicals, Inc., a producer of pine-based products. The deal is expected to close in the first quarter of 2011. Terms of the agreement were not disclosed. IAR, whose 2009 annual revenues were $278 million, supplies resins and additives to the aroma chemical, adhesives, graphic arts, specialty coating and synthetic rubber industries. Harima will purchase the IAR global product portfolio along with 11 manufacturing facilities on five continents. At closing, it is anticipated that the IAR management team and approximately 650 global associates will join Harima’s staff.

Omnova Solutions completes acquisition of Eliokem Omnova Solutions has completed its acquisition of specialty chemicals manufacturer Eliokem International. Omnova paid €227.5 million for Eliokem. In addition to Omnova’s five chemical production facilities in North America, which provide products and services worldwide, the acquisition adds global manufacturing capability to serve Europe and the high growth, developing markets in Asia with one plant in France (Le Havre), two plants in China (Ningbo and Caojing) and one in India (Valia). In addition, the Eliokem plant in Akron, Ohio, will provide Omnova with important new processing capabilities.

Arkema to acquire Total’s photocure and coatings resins business Arkema is set to acquire the coatings resins and photocure resins businesses of Total’s specialty chemicals activities for a €550 million. The acquisition expands Arkema’s position in the global coatings resins market and

PRICING CHANGES

Dow Coating Materials: Jan. 10–€110/MT increase in Europe and $130/MT increase in the Middle East, Turkey and Africa for acrylic and styrene-based products, including pure acrylic, styrenated and styrene-acrylic emulsions; €30/MT increase in Europe and $40/MT increase in the Middle East, Turkey and Africa for vinyl acetate-based products.