DIC Corporation, has entered into a definitive agreement to acquire BASF’s global pigments business, known as BASF Colors & Effects (BCE). The acquisition will broaden DIC’s portfolio as a global manufacturer of pigments, including those for electronic displays, cosmetics, coatings, plastics, inks and specialty applications, by creating a world-class pigments supplier that offers customers an even wider range of versatile solutions.
“Our acquisition of BCE brings together complementary resources and expertise of two recognized leaders in innovation, product stewardship, regulatory leadership, application support and manufacturing,” said Kaoru Ino, president and CEO of DIC. “We have outlined a clear growth path for DIC with the target to increase our sales to 1 trillion yen (approximately €8 billion) by 2025. In this context, BASF’s pigments portfolio is an important strategic addition in meeting our goals more expeditiously. It will allow us to expand our offering as one of the leading pigment suppliers globally and provide our customers even more versatile solutions.”
“We have achieved our goal to find an owner who considers pigments a core strategic business,” said Markus Kamieth, member of the board of executive directors of BASF SE, responsible for the Industrial Solutions segment. “DIC pursues ambitious growth plans and has announced to further develop the business in the coming years. We are convinced that the pigments business will be able to unfold its full potential within DIC.”
Customers will benefit as the acquisition offers a unique opportunity to combine complementary know-how and best practices to develop ground-breaking innovative solutions for the marketplace. As a company that strives for Color & Comfort, DIC believes that it can contribute to its customers by providing colors to society and life. With over 30 pigment production facilities worldwide between DIC and BCE, the company’s pigment portfolio will be able to offer broader product categories related to effect pigments, inorganic pigments, organic pigments, specialty dyes, and pigment preparations.
“As a long-standing business partner of BASF, we value the expertise and engagement of BASF’s employees in the pigments business,” said Myron Petruch, DIC executive officer and president and CEO of Sun Chemical, a subsidiary of DIC Corporation. “The move improves our pigment footprint in Europe and underscores our commitment to delivering solutions tailored to meet the needs of our customers. It also allows us to compete in the global marketplace more effectively going forward”
In the immediate future, business for customers will remain the same as usual. A transition team will be put in place to ensure a smooth transition for customers and employees by the expected closing date in the fourth quarter of 2020. For more information, please visit www.sunchemical.com.