BASF has agreed to divest its paper coating dispersions business in Pischelsdorf of Austria to Synthomer for around €30m.
Synthomer Austria will acquire BASF production site in Pischelsdorf, which produces styrene butadiene rubber (SBR) that can be used in the paper industry, specifically packaging end-markets.
The acquisition will allow Synthomer to expand its SBR business and production network for paper/packaging applications in Europe.
Paper dispersions, along with other additives and pigments, will be applied to enhance print quality of graphic paper, packaging paper and cardboard.
BASF decided to divest Austrian facility to focus on the production of paper coating dispersions in other two European sites, including Germany’s Ludwigshafen Verbund site and Finland’s Hamina site.
The company will also continue the operations without any changes in its paper coating dispersions facilities in the EMEA region, including Gebze of Turkey and Durban of South Africa.
Subject to regulatory approvals and other closing conditions, the deal is expected to be completed in early 2018.
Synthomer CEO Calum MacLean said: “This is another bolt-on acquisition that represents an excellent fit for Synthomer. It underscores our long term commitment to our customers in the paper industry, whilst providing us with an additional site to strengthen our network and stronger access to growing packaging end-markets in Europe.”
BASF Europe paper coating chemicals vice president professor Thomas Schiele said: “This decision helps us improve our competitiveness and creates the conditions necessary to offer products and services to our customers at attractive terms in the future.”
BASF’s dispersions and pigments division develops, produces and sells a range of pigments, resins, additives and polymer dispersions across the globe.
Image: Synthome to acquire BASF’s paper coating dispersions production site in Pischelsdorf. Photo: courtesy of adamr / FreeDigitalPhotos.net.