BASF announced today that it has reached an agreement to acquire Degussa’s construction chemicals business for a little under €2.2 billion. The transaction, which still requires approval from the relevant authorities, is expected to close by the middle of 2006.
“The acquisition allows us to tap into the growth potential of the construction chemicals market on a sustainable basis and will further expand our position in this high-yield industry,” commented Dr. Andreas Kreimeyer, member of the Board of Executive Directors of BASF Aktiengesellschaft.
According to BASF, the global construction chemicals market is valued at around €13 billion and is attractive in view of annual growth of about four to five percent.
In fiscal 2004, Degussa’s construction chemicals division posted sales of approximately €1.8 billion and an EBIT of €201 million. As the market and technology leader, as well as the largest supplier of construction chemical products, the division markets about 40,000 products worldwide and is organized in two segments, Admixture Systems and Construction Systems.
Admixture Systems offers products and system solutions for the concrete industry. Construction Systems is active in the areas of building systems, flooring applications, coatings and façades and expansion joints.