Lone Star to buy BASF's chemicals division in €3.17bn deal

The purchase price was debt-free and amounted to €3.17bn in cash. The transaction is expected to close in the third quarter of 2020, subject to the approval of the relevant competition authorities.

The GP is currently fundraising for its Lone Star Fund XI vehicle, which held a €2.9bn first close in Q3 2018 and has a €6bn target.

Unquote sister publication Mergermarket reported that final bids were due by 8 November 2019. A consortium of Cinven and Bain Capital were also in the final process. Bidders in the second round of the auction process in June 2019 included Lone Star, Cinven, KKR, Bain Capital and Advent International.

Blackstone and Switzerland-based cement producer LafargeHolcim left the process in July and October 2019 respectively.

In October 2019, Bain and Cinven were considering a joint bid, according to Mergermarket.

BASF is a chemicals producer active in the materials, industrials, surface technologies, nutrition and agriculture sectors. It generated sales of around €63bn in 2018 and currently employs 122,000 people. Headquartered in Ludwigshafen, the business is listed on the Frankfurt, London and Zurich stock exchanges. BASF has origins dating back 1865.

Company
With more than 7,000 employees, BASF's construction chemicals business is a producer of chemical additives for concrete. It operates production sites and sales offices in more than 60 countries and generated sales of €2.5bn in 2018.

People
BASF – Saori Dubourg (member of the board of executive directors).
Lone Star – Donald Quintin (president of Europe).

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