Lone Star Funds to acquire BASF’s Construction Chemicals business

German chemical company BASF and an affiliate of Lone Star, a US-based global private equity firm, have signed a purchase agreement for the acquisition of BASF’s Construction Chemicals business for €3.17 billion. The transaction is expected to close in the third quarter of 2020, subject to the approval of the relevant competition authorities.

“Our aim was to find a new home for our Construction Chemicals business where it can leverage its full potential,” said Saori Dubourg, member of the board of executive directors of BASF SE and responsible for the Construction Chemicals business. “Under the umbrella of Lone Star, the Construction Chemicals team can focus on a growth path with an industry-specific approach.”

“BASF’s Construction Chemicals business fits very well with our portfolio, complementing our investments in the construction materials industry,” said Donald Quintin, president of Europe at Lone Star. “We highly value the industry-wide recognised knowledge and competence of BASF’s Construction Chemicals experts, backed by a strong track record in innovative products and a compelling R&D pipeline. We look forward to jointly pursuing a growth-oriented business approach.”

BASF’s portfolio is organised into six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. The Group generated sales of around €63 billion in 2018. BASF’s Construction Chemicals business, with more than 7,000 employees, operates production sites and sales offices in more than 60 countries and generated sales of about €2.5 billion in 2018.

Lone Star is a private equity firm that invests globally in real estate, equity, credit and other financial assets. Since the establishment of its first fund in 1995, the company has organised 20 private equity funds with aggregate capital commitments totalling approximately US$85 billion. As a leading private equity investor in construction materials and related industries, Lone Star has extensive international experience in the sector with a strong portfolio of investments across both Europe and North America.