Chemical company BASF acquires specialty materials supplier Cognis for $858 million
By APWednesday, June 23, 2010
BASF acquires chemical company Cognis
BERLIN — Chemical company BASF SE said Wednesday it has agreed to acquire Cognis, a supplier of raw materials for cosmetics, detergents and cleaners, for €700 million ($858 million) in cash.
Including net financial debt and pension obligations, the enterprise value of the transaction is €3.1 billion, the company said. The closing of the transaction is expected for November 2010.
“With the acquisition of Cognis … we are further expanding our position as the world’s leading chemical company,” Juergen Hambrecht, the chairman of BASF’s board of executives, said.
Cognis employs about 5,500 people and operates in 30 countries. Besides chemicals, it also makes coatings and inks, lubricants, and products for agriculture and mining. In 2009, Cognis had sales of €2.6 billion.
BASF is based in the southwestern German city of Ludwigshafen. It has some 105,000 employees worldwide and posted sales of more than €50 billion in 2009.
Shares of the company were down a quarter of a percent on Wednesday, at €46.63 in Frankfurt trading.
