BASF completes acquisition of Cognis
BASF successfully completed its acquisition of Cognis Holding
GmbH from Cognis Holding Luxembourg S.àr.l. controlled by
Permira Funds, GS Capital Partners and SV Life Sciences on
December 9, 2010. The equity purchase price was €700 million.
Including net financial debt and pension obligations, the
enterprise value of the transaction is €3.1 billion.
"Cognis' and BASF's know-how and range of products complement
each other very well. The combination will broaden our portfolio
of specialty chemicals and boost innovation for our customers,”
said Dr. Jürgen Hambrecht, Chairman of BASF's Board of Executive
Through the purchase of Cognis, BASF will achieve a leading
position in personal care ingredients, strengthen its leading
position in value-added products for home care, establish a
strong position in human nutrition and further strengthen its
position in pharma excipients.
BASF will also be able to offer customers of the Performance
Chemicals and Dispersions & Pigments divisions an even more
attractive portfolio. The acquisition will in particular expand
BASF's portfolio with products based on renewable raw materials.
BASF intends to fully integrate Cognis into the BASF Group.
Detailed integration plans will be developed by the end of the
first quarter of 2011. Completion of the structural integration
is targeted for the end of 2011.
"Our highest priority is to ensure a smooth and seamless
integration process while maintaining the highest standards of
customer service and product quality,,” said Dr. John Feldmann,
member of the Board of Executive Directors of BASF and
responsible for the Performance Products segment. Most of Cognis'
businesses will be integrated into the divisions of this
“Cognis will make an important contribution to the growth
strategy of our Performance Products segment. We aim to grow two
percentage points above the relevant markets and achieve an
EBITDA margin of minimum 20% as of 2013. The businesses acquired
from Cognis will help us to achieve these goals,” explained
Courtesy: BASF SE (67056