BASF to sell its textile chemicals business to Archroma
16/10/2014
Archroma said the acquisition will complement its textile dyes and chemicals portfolio and geographical presence. In addition, it will allow Archroma to reinforce its textile specialties team with BASF’s global specialist team that has an especially strong presence in Asia and other high-growth markets. Both BASF’s and Archroma’s textile businesses are headquartered in Singapore, close to Asian textile markets and customers.
Owner SK Capital Partners launched Archroma in 2013 after acquiring the textile business of another major European chemicals group, Clariant.
“With this agreement, we are bringing together the century-old history of BASF textile chemicals products, technologies and people with Archroma’s already strong heritage from Hoechst, Sandoz and Clariant,” said Archroma chief executive, Alexander Wessels, at the time of the announcement. “Archroma also acquired 49% of textile manufacturer M. Dohmen in May 2014, illustrating our company’s determination to become the preferred supplier in our industries.”
For its part, BASF said the decision to sell its textile division was in line with a strategy of focusing its wider performance products segment on “growth-driven customer industries”. Performance chemicals division president, Hans Reiners, said: “In a very competitive and highly fragmented market, we have successfully positioned the textile chemicals business as one of the leading global textile suppliers. The current consolidation process of the industry means that a critical mass is necessary to grow the business successfully. We see positive future growth prospects for the business under the umbrella of Archroma, building on the expertise and professionalism of our textile chemicals team.”
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