LONDON-BASF has successfully completed its 3.1bn ( 4.1bn) acquisition of specialty chemicals producer Cognis, the German chemicals major said on Friday.
The equity purchase price was 700m, including net financial debt and pension obligations.
BASF said it intended to fully integrate most of Cognis into its performance products segment. Detailed integration plans would be developed by the end of the first quarter of 2011, it added.
Completion of the structural integration was targeted for the end of 2011, BASF said.
"The combination [of Cognis and BASF] will broaden our portfolio of specialty chemicals and boost innovation for our customers," said BASF chairman Jurgen Hambrecht.
BASF said that the acquisition of Cognis would allow the group to achieve a leading position in personal care ingredients and strengthen its position in value-added products for home care.
"Cognis will make an important contribution to the growth strategy of our performance products segment. We aim to grow two percentage points above the relevant markets and achieve an EBITDA (earnings before interest, taxation, depreciation and amortization) margin of minimum 20% as of 2013," said John Feldmann, a member of BASF s board of executive directors.
In November, the European Commission cleared the acquisition, subject to BASF's commitment to divest Cognis's hydroxy monomers business, a chemical used in coatings and adhesives.
The acquisition of Cognis is BASF's largest deal since it bought specialty chemicals major Ciba for around ?.9bn in April 2009.
Cognis swung to a net profit of ?09m in the first half of 2010, compared with a loss of 20m reported in the same period last year, as a result of a steady improvement in sales volumes
Cognis a supplier of specialty chemicals and nutritional ingredients, with a particular focus on the food and healthcare markets and the cosmetics, detergents and cleaners industries.
Cognis, which used to be part of German soap, detergents and adhesives major Henkel, was sold in 2001 to a group of private equity firms advised by Permira and Goldman Sachs.
($1 = 0.76)
The equity purchase price was 700m, including net financial debt and pension obligations.
BASF said it intended to fully integrate most of Cognis into its performance products segment. Detailed integration plans would be developed by the end of the first quarter of 2011, it added.
Completion of the structural integration was targeted for the end of 2011, BASF said.
"The combination [of Cognis and BASF] will broaden our portfolio of specialty chemicals and boost innovation for our customers," said BASF chairman Jurgen Hambrecht.
BASF said that the acquisition of Cognis would allow the group to achieve a leading position in personal care ingredients and strengthen its position in value-added products for home care.
"Cognis will make an important contribution to the growth strategy of our performance products segment. We aim to grow two percentage points above the relevant markets and achieve an EBITDA (earnings before interest, taxation, depreciation and amortization) margin of minimum 20% as of 2013," said John Feldmann, a member of BASF s board of executive directors.
In November, the European Commission cleared the acquisition, subject to BASF's commitment to divest Cognis's hydroxy monomers business, a chemical used in coatings and adhesives.
The acquisition of Cognis is BASF's largest deal since it bought specialty chemicals major Ciba for around ?.9bn in April 2009.
Cognis swung to a net profit of ?09m in the first half of 2010, compared with a loss of 20m reported in the same period last year, as a result of a steady improvement in sales volumes
Cognis a supplier of specialty chemicals and nutritional ingredients, with a particular focus on the food and healthcare markets and the cosmetics, detergents and cleaners industries.
Cognis, which used to be part of German soap, detergents and adhesives major Henkel, was sold in 2001 to a group of private equity firms advised by Permira and Goldman Sachs.
($1 = 0.76)
