Germany chemical giant BASF said Friday it had completed the acquisition of German specialty chemicals company Cognis for an enterprise value of Eur3.1 billion ($4.1 billion).
It said in a statement it would fully integrate Cognis by the end of next year.
"Cognis will make an important contribution to the growth strategy of our Performance Products segment," said Dr Juergen Hambrecht, Chairman of BASF's Board of Executive Directors.
"We aim to grow two percentage points above the relevant markets and achieve an EBITDA margin of minimum 20% as of 2013. The businesses acquired from Cognis will help us to achieve these goals," he added.
Through the purchase of Cognis, BASF will achieve a leading position in personal care products, strengthen its position in value-added products for home care, establish a strong position in human nutrition and further strengthen its position in pharma excipients, the statement said.
It will also be able to offer customers of the Performance Chemicals and Dispersions & Pigments divisions an expanded portfolio. The acquisition will in particular expand BASF's portfolio with products based on renewable raw materials.
BASF acquired Cognis from GS Capital, the private equity arm of Goldman Sachs, Permira Funds and SV Life Sciences.
The acquisition received approval from the European Commission on November 30, that was subject to BASF divesting Cognis' hydroxy methacrylates, multifunctional methacrylates and adducts businesses, and plants that manufacture polyalkylene glycols and PAG-based lubricants.
BASF will retain Cognis' customer base and intellectual property rights businesses and will receive PAG and PAG-based lubricants manufactured at its plant at Hythe in the UK through a toll manufacturing agreement.
It will grant a license for the manufacture of these products to the buyer of the plants.
It said in a statement it would fully integrate Cognis by the end of next year.
"Cognis will make an important contribution to the growth strategy of our Performance Products segment," said Dr Juergen Hambrecht, Chairman of BASF's Board of Executive Directors.
"We aim to grow two percentage points above the relevant markets and achieve an EBITDA margin of minimum 20% as of 2013. The businesses acquired from Cognis will help us to achieve these goals," he added.
Through the purchase of Cognis, BASF will achieve a leading position in personal care products, strengthen its position in value-added products for home care, establish a strong position in human nutrition and further strengthen its position in pharma excipients, the statement said.
It will also be able to offer customers of the Performance Chemicals and Dispersions & Pigments divisions an expanded portfolio. The acquisition will in particular expand BASF's portfolio with products based on renewable raw materials.
BASF acquired Cognis from GS Capital, the private equity arm of Goldman Sachs, Permira Funds and SV Life Sciences.
The acquisition received approval from the European Commission on November 30, that was subject to BASF divesting Cognis' hydroxy methacrylates, multifunctional methacrylates and adducts businesses, and plants that manufacture polyalkylene glycols and PAG-based lubricants.
BASF will retain Cognis' customer base and intellectual property rights businesses and will receive PAG and PAG-based lubricants manufactured at its plant at Hythe in the UK through a toll manufacturing agreement.
It will grant a license for the manufacture of these products to the buyer of the plants.
