BASF will acquire resins manufacturer Johnson Polymer, a subsidiary of JohnsonDiversey Inc. of Sturtevant, WI. The agreement provides for a sale price of $470 million on a cash and debt-free basis. Both companies have agreed not to disclose additional financial details of the deal. The transaction, which is still subject to approval by the relevant authorities, is expected to close by the end of June.
Johnson Polymer is a leading producer and supplier of water-based resins, important raw materials for the production of coatings in the automotive, wood, packaging and printing industries. Johnson Polymer’s water-based product range complements BASF’s existing portfolio, which concentrates mainly on high-solids and UV resins.
Johnson Polymer has 430 employees and operates two production sites in the U.S. and one in the Netherlands, as well as technical centers and offices in Asia Pacific.
“This transaction is a further important step in strengthening BASF’s technology and innovation-driven specialty business with performance products. The deal will further improve BASF’s position in a profitable, fast-growing business and open up new areas for innovation,” said BASF board member Andreas Kreimeyer.
“The acquisition of Johnson Polymer expands our high-growth coating resins business. We are supplementing our expertise in this area with water-based technologies from a customer-focused company with a highly qualified team,” added Patrick Prévost, president of BASF’s performance chemicals division. “At the same time, BASF will strengthen its market presence, particularly in North America, and will therefore be able to offer its customers a wider range of technologies from a stronger regional base.”
Johnson Polymer’s operations will be integrated into BASF’s Perform-ance Chemicals division. This division produces and markets a broad range of specialty chemicals worldwide. These products include colorants and additives, which, like resins, are used in coatings applications.