BASF has agreed to acquire certain assets of the Callery Chemical Division of Mine Safety Appliances Company (MSA), Pittsburgh, Pennsylvania, the companies announced today. BASF will pay approximately $65 million (about 58 million Euros) for these assets.
According to a statement, the transaction will broaden BASF’s inorganic chemicals portfolio and support an expansion into non-cyclical life science markets globally while strengthening MSA’s focus on its core safety products business.
The acquisition includes Callery’s Evans City, Pennsylvania site.
BASF and MSA expect to complete the transaction by the end of the third quarter of 2003, subject to required regulatory approval, receipt of consents to assign certain material agreements, and satisfaction of other customary closing conditions.
In 2002, Callery Chemical had sales of $30 million (about 27 million Euros). Operating since 1939, it is a manufacturer of boron and potassium used in pharmaceutical products and other applications.
‘Callery is a perfect fit for BASF,’ said Wayne Hill, group vice president, Intermediates and Inorganics Group, BASF Corporation. ‘It is an attractive business containing specialty inorganic products that expand our inorganic product line to one of the broadest available. This acquisition can help BASF to quickly expand inorganic product sales in important non-cyclical markets including pharmaceutical, agrochemical and fine chemicals.’
BASF plans to continue manufacturing operations at the Evans City plant, which is located north of Pittsburgh. Once the transaction closes, Callery will become part of BASF’s North American Inorganics business and its global Inorganics division. MSA’s Safety Products manufacturing operations at the Evans City location will continue under a multi-year lease agreement between the parties.