Following the recent acquisition of Engelhard Corp., BASF has announced the full integration of Engelhard into its global operations. BASF expects the integration to result in annual synergies of $200 million by 2010. Almost half of this amount will be achieved by 2007 and more than 80% by 2008. Contributing to the synergies will be a broader global reach, a stronger business presence in certain regions such as North America, and further extensions into key markets.
The integration will lead to a reduction of approximately 800 positions, the majority of which will be in the U.S. The one-time cost associated with the integration of the former Engelhard business is estimated to be $120 million.
The catalysts division and major related research activities will be located in Iselin, NJ, while BASF’s headquarters in North America will remain in Florham Park, NJ.
Central to BASF’s integration plan is the structure of the new catalysts division led by Wayne T. Smith, which will merge BASF’s existing chemical catalysts business with those catalysts business recently acquired. In addition, BASF will combine the respective research activities in its global technology platform.