Solenis and BASF have signed an agreement to combine BASF’s paper and water chemicals business with Solenis to jointly create a customer-focused global specialty chemical company. The combined company intends to operate under the Solenis brand in two specialty chemical businesses: paper technologies and industrial water technologies.
The transaction is expected to close around the end of 2018 following regulatory approvals and other customary conditions. Financial terms were not disclosed.
“Together, we have a unique opportunity to create a customer-focused global specialty chemical company with an enhanced focus and expanded offerings,” said Solenis president and CEO John Panichella, who will lead the combined company from Delaware, USA. “I am pleased that our cultures are closely aligned and that our companies share a strong common desire to create value for our customers. Together, as one team of experts, we will continue to strive for excellence in innovation, sustainability, and safety.”
For the pulp and paper industry, the product portfolio of the combined enterprise will cover the entire range of water, process and functional chemistries as well as comprehensive service capabilities. For water-intensive markets, customers will benefit from Solenis’ high-quality service capabilities and BASF’s broad water treatment chemicals platform.
The transaction comprises BASF’s global paper and water chemicals business, including nearly 1,300 employees globally. BASF Canada is headquartered in Mississauga, Ont. and has approximately 675 employees at 11 production facilities and offices located across Canada.