The acquisition will expand DIC’s portfolio as a global manufacturer of pigments, including for cosmetics, coatings, plastics, inks and speciality applications
DIC has agreed to acquire BASF’s global pigments business (Credit: Pixabay)
Sun Chemical’s parent firm DIC has signed an agreement to acquire BASF’s global pigments business for an undisclosed sum.
The acquisition of BASF Colors & Effects (BCE) will allow DIC to expand its pigments portfolio and establish as a world-class pigments supplier offering a range of advanced solutions.
DIC provides pigment solutions for use in applications, including cosmetics, coatings, plastics, inks, electronic displays, and speciality applications.
The firm’s president and CEO Kaoru Ino said: “Our acquisition of BCE brings together complementary resources and expertise of two recognised leaders in innovation, product stewardship, regulatory leadership, application support and manufacturing.
“We have outlined a clear growth path for DIC with the target to increase our sales to 1 trillion yen (approximately €8 billion) by 2025. In this context, BASF’s pigments portfolio is an important strategic addition in meeting our goals more expeditiously.”
DIC to benefit through the acquisition of BASF’s global pigments business
The acquisition will also enable DIC to combine complementary know-how and best practices for the development of advanced solutions for the marketplace.
With more than 30 pigment production facilities between DIC and BCE across the globe, the company’s pigment portfolio can offer a wider range of product categories related to effect pigments, inorganic pigments, organic pigments, speciality dyes, and pigment preparations.
Sun Chemical president and CEO and DIC executive officer Myron Petruch said: “The move improves our pigment footprint in Europe and underscores our commitment to delivering solutions tailored to meet the needs of our customers.”
Subject to the receipt of regulatory approvals, the deal is expected to be completed in the fourth quarter of 2020.
In March this year, Sun Chemical joined CEFLEX to support the development of a circular economy for flexible packaging.
CEFLEX is the collaborative European consortium of companies and associations representing the entire flexible packaging value chain.
Sun Chemical produces printing inks, coatings and supplies, pigments, polymers, liquid compounds, solid compounds, and application materials.